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The Standard Media Group has recently issued a formal notice regarding a forthcoming redundancy process that will impact over 300 employees across various departments.
This significant decision, which was publicly disclosed on Wednesday, July 31, 2024, marks a major shift for the organization as it grapples with a challenging economic environment and evolving media trends.
According to the notice shared by Mpasho, the redundancy will officially take effect on August 31, 2024.
The Standard Media Group Board detailed that the redundancy notice, which was issued on July 31, provides a one-month period during which employees will be notified and informed in writing about their status. This advance notice aims to give affected employees adequate time to prepare for the transition.
The redundancy process will involve several key components concerning the compensation and benefits for the affected employees.
The Standard Media Group has committed to ensuring that all employees who are impacted by this decision will receive payments for the days they have worked up until their exit date.
In addition to this, they will be entitled to severance pay calculated at 15 days’ salary (or as stipulated in the Collective Bargaining Agreement for union members) for each completed year of service.
Furthermore, the redundancy package includes notice pay in accordance with each employee’s contract of employment, compensation for any accrued but unused leave days at the time of their departure, and pension dues or gratuity in line with the Scheme Rules or contract provisions.
This comprehensive approach aims to provide financial support and stability to employees as they transition out of the organization.
The Board provided insights into the reasoning behind the decision, highlighting the difficult operating environment and its prolonged impact on revenue generation as critical factors.
The media industry has been experiencing significant shifts due to technological advancements and changing consumer preferences, which have necessitated a re-evaluation of the Group’s business model.
The Board acknowledged that these shifts in media consumption patterns, driven by the rise of digital media and evolving audience expectations, have forced the organization to reconsider its operational structure.
In response to these challenges, the Standard Media Group is undertaking a reorganization aimed at streamlining its operations and adopting a leaner, more efficient structure. The goal of this restructuring is to enhance the Group’s performance and foster future growth.
The Board expressed confidence that these changes, coupled with new leadership that will be joining the organization, are essential for ensuring the stability and continuity of the business. This strategic move is intended to maintain and improve the quality of journalism offered by the Group.
Additionally, the Board announced plans to rationalize the Group’s product offerings to better align with the current media landscape.
This effort is designed to ensure that the Group remains relevant and competitive in an ever-evolving industry, ultimately aiming to strengthen its position and effectiveness in delivering quality content to its audience.
