Nairobi, Kenya – Nation Media Group has dismissed a letter of redundancy doing rounds on social media.
The mainstream media company said the claims to lay off 600 workers revealed in the letter are false, terming it fake.
“We wish to notify you that this poster and content contained is fake,” read the company’s post on X platform (formerly Twitter).
What are the contents of the fake Nation Media redundancy letter
According to the letter, the Group chairman said the 600 staff members will be laid off across various departments in the company by the end of March 2024.
The letter cited disruption in advertisement revenue, saying the government has not paid the company for up to 20 months of advertisement.
It also noted that the company was restructuring to meet the current economic trends, revealing that the company was cutting down its print business.
It guaranteed payment of affected workers until the date of their exit, severance pay of 15 days for union workers, leave days payment and pension dues among others.
Is Nation Media Group hit by tough economic times?
In October last year, the company announced a profit warning of more than 25% for the year ending December 2023.
The media firm cited increased operational costs exacerbated by the weaker exchange rate as the shilling continued to fall against the US dollar.
“Like most sectors of the economy, media business, particularly in Kenya has been adversely impacted by headwinds mainly attributable to the relentless increase in prices of basic commodities, drastic rise in fuel prices, run away depreciation of the Kenya shilling, rising interest rates and higher taxes.
“Having reviewed the company’s performance for the year ending December 2023, the board determined that earnings will be lower than the previous year by at least 25%,” said the company in a cautionary statement released on October 25, 2023.
It also attributed the rise in operational costs to an increase in global prices of newsprint combined with higher distribution costs resulting from high fuel prices and the weak exchange rate.
The Group, which publishes several newspapers and operates broadcast stations and online sites, said it is integrating its newsroom and new content strategy to enter it as the leading multi-media company in Kenya and the East Africa region.
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