NAIROBI, Kenya, Jul 10 – Longhorn Publishers Limited has announced new job cuts in a restructuring plan as it seeks to reduce costs by Sh100 million.
Speaking to Capital FM Business, Group Managing Director Simon Ngigi says the process has been necessitated by the emerging challenges affecting the publishing industry in the markets they operate that include digital disruption, piracy, and government policies.
The staff rationalisation and realignment exercise is aimed at enhancing operational efficiency and will conclude in August 2017.
“The disruption has necessitated the rethinking of our business model and segmentation to enhance our competitive edge,” Ngigi said.
The firm has however not disclosed the number of employees that will be affected.
“The organisational restructuring process which is set to conclude in August 2017 is guided by the Kenya Labour Laws and global best practices. The process will further bolster our capital base hence accelerating Longhorn Publishers future growth,” Ngigi added.
Longhorn Publishers is the leading publisher of quality educational and creative books in East Africa.
The company has set up fully functioning subsidiaries in Uganda, Tanzania and Rwanda and has entered into strategic agreements with partners in Senegal, DRC, Malawi, Zambia and Ethiopia.
“We wish to assure our stakeholders and investing public that the process will be quick, fair and efficient, putting their interest at the centre of the entire exercise. We expect a smooth transition with no disruption in serving our customers” he assured.
Last year, Centum Investment Company Limited raised its stake in Longhorn Publishers to 60 per cent from 31.25 per cent following a rights issue.
The investment company said it had no intention to take over the company.
Longhorn Publishers recorded a 45 per cent growth in after-tax profit for its full year ending June 30, 2016 to stand at Sh104 million compared to Sh71 million in the previous year.
The company’s revenues went up by 77.2 per cent to Sh1.5 billion compared to Sh848 million posted in a similar period.
The company attributes the turnover growth due to a good uptake in referenced products.