Mediamax has announced plans to slash employees salaries by 20 to 50 per cent on gross pay during covid-19 pandemic period.
In a statement, the media house that the Covid-19 pandemic has taken toll on the companies profits, which relies heavily on advertising revenue.
“We have seen a continuous decline of advertising revenue since the announcement of the first case of Corona Virus in Kenya. Our clients have been adversely affected and within a short span of time have had to make difficult decisions regarding their employees and their businesses including cancellation of their communication and advertising plans,” said the statement.
The salary cuts will start with April salaries, which will see most employees caught off-guard.
“We have consulted extensively and held several meetings with the leadership team and the board of directors to find ways and methods to sustain and keep the Company afloat during this pandemic. We have come up with several measures to ensure that we try to sustain and ensure that the business at this stage survives and sustains itself. Amongst the proposed measures that will directly apply to employees will be a reduction of between 20% and 50% on Gross Monthly Pay based on job levels effective April 2020,” added the statement.
Each of the employees will receive a personal letter from the Human Resources Department confirming the decision and seeking their formal consent, a move that could trigger rebellion.
The company has however promised to review the situation once normalcy resumes based on revenue, Cashflow and the state of the business going forward.
Some of the staffers have been sent of compulsory unpaid leave in a bid to reduce costs.
“Due to reduced level of operations due to the COVID 19 pandemic it has become necessary to request staff whose services are not required during this period to proceed immediately on leave,” added the statement.
Mediamax is the holding company of the People Daily Newspaper, Tv stations (Kameme and K24) Radio stations ( Emoo FM, Milele FM, Kameme FM, Msenangu (formerly Pilipili FM), Mayian FM and Meru FM).