This archive report was first published on 2 July 2020.
On July 3rd, 2020, Nation Media Group (NMG) began implementing a workforce reduction plan, a move aimed at digitizing its operations and developing new advertising revenue streams in response to the COVID-19 pandemic.
According to a statement from NMG Group CEO Stephen Gitagama, the prevailing salary cuts will be extended until December 31st, 2020. The media house emphasized that this decision was unavoidable and would be reviewed based on the company's performance as the COVID-19 situation evolves.
"It is an extremely difficult decision in view of the prevailing circumstances and we understand the impact this will have on those affected and their families," said Clifford Machoka, Head of Corporate & Regulatory Affairs, NMG Group.
The media house aims to re-engineer its operations to accelerate the digital transition process, shifting its business model from print advertising and physical reader copies to digital advertising, ePaper subscriptions, and content-driven reader revenue.
As the COVID-19 outbreak continues to impact the media industry, NMG is not alone in its efforts to adapt. Major media houses have shifted to digital publications, and advertisers have increasingly turned to digital platforms, forcing media houses to rework their marketing and advertising teams.
On June 2nd, 2020, NMG issued a profit warning, stating that the company's earnings for the financial year ending December 31st, 2020, would be lower than the previous year by at least 25%.
Support will be provided to affected staff, including counseling, relocation assistance, and medical cover for a period of two months until August 31st, 2020. The company has also negotiated a medical insurance scheme that those affected may opt to individually join.
