Wednesday, October 30, 2019 - Mediamax Network Ltd has sent home 150 employees due to dwindling revenues and tough economic times.
Last month, acting CEO, Ken Ngaruiya, said that the company has been forced to reorganise its staff structure and abolish some positions due to the recent economic downturn.
“Mediamax regrets to advise that owing to the recent economic downturn and loss of its main revenue streams, it shall reorganize its staff structure and abolish some positions as part of its cost-cutting measures,” said Ken Ngaruiya in a letter addressed to the County Labour Officer and staff.
“In view of the above, the services of some of its employees will be rendered superfluous, thereby necessitating the termination of their employment on account of redundancy,” the letter read.
The one month notice has elapsed and we have established that the cut has been deep and painful with over 150 employees being sent home.
Besides laying off staff, a reliable source intimates to us that some anchors poached from rival media houses have had to renegotiate their terms and their salaries slashed by over 20%.
The Company that owns K24 TV, Kameme Radio, People Daily and Milele FM Radio, is among media houses in Kenya feeling the pinch from the Government’s crackdown on betting firms in the country.
The closure of these betting firms coupled with the Government’s directive to Ministries, Departments and Agencies to publicise strategic plans, service charters or events on Government websites has forced media houses to go back to the drawing board.
Mediamax is said to be co-owned by President Uhuru Kenyatta and his Deputy President, Dr. William Ruto, but even that has not insulated the media house from the harsh economic times.
The Kenyan DAILY POST