Panic As Cash Strapped Standard Group Asks Employees to Take Early Retirement
Financially strapped Standard Group has asked its employees to accept early retirement as the Moi-owned media conglomerate restructures in response to a revenue hemorrhage caused by a decline in advertising revenues.
In an internal memo leaked by staff to Kenyans.co.ke, the Acting CEO Joe Munene assured staff that those who accept the offer will not leave empty-handed, a move that is anticipated to assist the company in further reducing its payroll in response to editorial teams’ complaints about a shrinking talent pool.
The request comes months after the company sent employees home in an effort to reduce costs due to difficulties paying salaries and other expenditures.
Staff has been paid in installments, indicating that the media corporation that owns, among other brands, the Standard newspaper and KTN is struggling financially.
“After careful consideration and in our ongoing efforts to adapt to changing business needs, we are pleased to announce the availability of a Voluntary Early Retirement (VER) Package,” read part of the statement.
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“The VER program offers all our employees voluntary opportunity for employment separation with an attractive benefits package.”
The benefits include payment for days worked up until the date of separation, severance pay of 15 days for each completed year of service, and payment for accrued but unused leave days at the time of separation.
Others include a payment of benevolence for every completed year of service, as well as a payment of notice pay in accordance with the terms of the employment contract and the pension scheme rules.
Those who accept the offer will also receive medical and group life insurance through the end of the year.
The promotion will continue from Friday, October 6 through Wednesday, October 11 at midnight.
However, the administration stated that it reserved the right to approve or deny requests for the package.
The VER procedure will run concurrently with the ongoing redundancy process, which will not be interrupted. Â
Panic As Cash Strapped Standard Group Asks Employees to Take Early Retirement
