Radio Africa Group has issued a notice of intended redundancies as the company faces revenue challenges. A statement from the Group CEO notes that the company is transitioning from older revenue models as a result of new trends in advertising, the primary source of revenue in media.
“Following the current HR handbook, Radio Africa Limited shall give employees declared redundant one month’s notice, or pay one month salary in lieu of notice which and severance pay at the rate of 15 days pay for each year of service.” Patrick Quarcoo, the Group CEO, said in a statement.
The statement further reveals that the revenue shortfalls require a restructuring of the business. Such entails reorganization of positions and job roles, which will affect employees in brands like Kiss 100, Classic 105, Radio Jambo, X FM, East FM, Relax FM, The Star newspaper, and Kiss Television.
Dwindling Advertisement Revenue
“We are five months into our new financial year, and we continue to experience downward pressure on total revenue. We are now forced by the changes in the advertising markets to transition from our old media revenue model. The trend now requires a phased restructuring of our business which may include reorganization of job businesses, job roles…” Quarcoo continues.
Patterns in advertising have forced most of the traditional media houses to restructure their business operations as audiences move away from print and TV to internet advertisement. Therefore, client companies spend less on media houses as compared to the internet as a whole.
As a result, some media houses have closed shop, other scaling down operations like the case of Radio Africa Group.
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