Nation Media Group(NMG) has announced plans to reduce its workforce as it seeks to digitize its operations so as to survive the negative effects of COVID-19 on the media industry.
“This is an extremely difficult decision in the prevailing circumstances. This exercise will be carried out with utmost due respect to our employees and within the Kenyan laws. We will strive to provide all the necessary support to help them manage the transition,” said Clifford Machoka, Head of Corporate & Regulatory Affairs, NMG Group.
NMG said that the idea is to re-engineer its operations so as to accelerate the digital transition process.
In the light of the COVID-19 outbreak, all the major media houses have shifted focus to digital publications as the demand for print newspapers has declined.
Advertisers have also changed their preferences to digital platforms, forcing media houses to rework their marketing and advertising teams.
“The Board of Directors, having reviewed the company’s performance forecast for the current trading period, has determined that the earnings for the financial year ending 31 December 2020, will be lower than the earnings for the previous year by at least twenty five percent,” said NMG in a profit warning two months ago.
Other Kenyan media houses like Royal Media Services, Mediamax, and Standard Group have also laid off some of their workers in an effort to cut expenses.
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