ANOTHER BITTER DOZE FOR MEDIA PRACTITIONERS AS RETRENCHMENT OF (100) WORKS KICKS OFF AT RADIO AFRICA GROUP.

RADIO AFRICA GROUP KICKS OFF STAFF RATIONALIZATION AS AWAY OF RESTRUCTURING FOR A NEW DIGITAL AGE.
By Dennis Milimo
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Patrick Quarcoo, Group CEO at Radio Africa Group. 
The Kenyan economy seems to under tries as day in day out you will receive news a certain company firing its employees in the name of restructuring and cutting of its expenditures. Recently the media industry has been a victim of this system, as the entire big main stream media have been laying off employees with the aim of building an enduring business in this new digital era.
Radio Africa Group, one of the biggest media house in the country kicked off its much-awaited staff rationalization where more 100 employees are set to be shown the door among them journalists.
According to Patrick Quarcoo, Group CEO at Radio Africa Group, last year they embarked on a major strategic shift to move Radio Africa Group, from a traditional media business on the path to a new digital content business that serves the needs of Kenya’s emergent millennial.
Radio Africa group will be lying off a number of employees who have worked with the company to where it is today.  This is one of the toughest any employer can make in the history of his/her company.
“We will be saying goodbye to colleagues who have worked to bring the company to where it is today.  This right -scaling of our business will ensure that we meet the new demands of a changing advertising market in Kenya,” part of the statement.
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According to the statement signed by Patrick Quarcoo, their 2017 strategy will focus on cost efficiency and discipline, departmental restructuring and positional changes to drive growth in their core business and investing in high value digital and related markets and products.
“We converged our radio, print and television content creation divisions into one unit in March 2016.  In addition, we introduced new business strategies and new performance management into some of our under performing businesses.  We are beginning to see the benefits in the bottom line of some of these business units,” said Patrick Quarcoo , Group CEO.
The Radio Africa Group which is housed at Lion’s Place, owns a number of stations among them  KISS 100, Classic 105, Radio Jambo, East FM, KISS TV and The Star newspaper, and recently they dropped on the market hence not making enough money to sustain its operations fully, hence the retrenchment
According to research in terms of listener-ship in the country Radio Africa owned stations seems not to be doing well on the market. Radio Citizen leads in the national reach ranking with 49% reach, followed by Radio Maisha 42%, Radio Jambo 37%, Milele FM 33%, while Radio Africa’s money-minter Classic FM trails at 30%, followed by Kiss 100 at 26%.
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At the beginning of this year Nation Media group rendered a number of its employees jobless with the same aim of restructuring and cutting off expenditures.  Wearing the same shoe Royal media services also had shown a good number of its work force the door last year.
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This is just a fraction of the companies that have retrenched employees in the year 2016/2017. Portland cement sucked off 1000 people, standard chartered bank 300, Equity Bank 400, Airtel Kenya 100, KQ 38 , Family Bank unknown number, Sameer Africa close to 600.
Her is the official statement:
Last year, we embarked on a major strategic shift to move Radio Africa Group, from a traditional media business on the path to a new digital content business that serves the needs of Kenya’s emergent millennials.
As a part of this strategy, we converged our radio, print and television content creation divisions into one unit in March 2016.  In addition, we introduced new business strategies and new performance management into some of our underperforming businesses.  We are beginning to see the benefits in the bottom line of some of these business units.
The next phase of our change begins this month. We have taken a comprehensive look at our operations and made the tough decisions necessary to focus the company on the significant and promising opportunities of the future.   As a result, we are nowundertaking operational efficiency measures to reduce overall operating costs in 2017. This will affect some positions and some roles that will be merged or become redundant. 
We will be saying goodbye to colleagues who have worked to bring the company to where it is today.  This is  a tough call for the media industry in Kenya and worldwide,  as every media industry player restructures to build an enduring business in a new digital age.  This right -scaling of our business will ensure that we meet the new demands of a changing advertising market in Kenya.
Our 2017 strategy, will continue to focus on cost efficiencies and discipline, departmental restructuring and positional changes to drive growth in our core business, de-emphasise underperforming units and invest in high value digital and related markets and products. This strategic change will firmly drive our long terms goals of meeting our profitability and related financial targets
 I wish to assure all staff that the restructuring will be done with due regard to the provisions of the law and with respect to those affected.
Yours Sincerely
Patrick Quarcoo , Group CEO

 

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