Capital FM Kenya is set to fire a number of its employs in a restructuring process as the media industry continues to face difficult times.
The media station settled on the decision to layoff its employees after they reportedly refused to accept a pay cut proposed by the company.
MaryAnn Musangi who is in charge of Capital FM said only seven employees out of 112 accepted the pay cut.
“The reality is that even after engaging in consultation with employees, only 7 members of staff out of 112 have consented to the proposed salary reductions
“We are therefore unable to gain traction with this proposal put forward and in compliance with the Employment Act, we are left with no option but to defer the proposal and radically rethink the future of our business,” Musangi said.
Musangi said the company has been making losses since 2018, adding that in 2020 they cut salaries of its employees to avoid firing.
Earlier this year, the business reinstated full salaries after improvement in performance.
“Early 2022, our revenues started to improve and in April 2022 we reinstated ful salary pay. This decision was based on continued growth of revenues enabling 100% salary pay a commitment you as staff made to each other
“Unfortunately, this action of reinstating 100% salary did not motivate the staff to continue driving the revenue targets and we have since witnessed a further slump in revenues which has put the company deeper in the red,” Musangi added.
This comes days after Radio Africa announced plans to reduce its workforce in what it has termed reorganizing internal operations.
In an internal memo dated Friday, December the company said the company will declare some positions redundant depending on the new structure.
In the memo signed by group CEO Patrick Quarcoo, the company also attributed the redundancy to the recent layoffs witnessed in the media industry.
“We will therefore be reorganizing our internal operations. In the process we may declare numerous positions redundant based on the new structure,” the memo read.