Businessfront, the media conglomerate behind platforms such as Techpoint Africa, Finance in Africa, Energy in Africa, and Intelpoint, has recently announced workforce reductions across its various brands. The company cites this move as essential for ensuring sustainable growth and sharpening its strategic focus for the future.
In a communication shared with TechCabal, CEO Muyiwa Matuloku confirmed the layoffs but clarified that only a small fraction of roles were affected. He reassured stakeholders that all Businessfront’s media outlets, including Techpoint Africa, remain fully operational and continue to serve their audiences and clients without interruption. However, he did not provide specific details regarding the number of employees impacted or the support mechanisms available to those affected.
This organizational adjustment reflects a wider pattern among African media houses grappling with shrinking advertising revenues and shifting audience habits, as an increasing number of consumers turn to social media platforms for their news. For example, Kenya’s National Media Group, once the nation’s most affluent media company, has implemented staff cuts in recent years, while Standard Group recently disclosed layoffs involving over 300 employees.
A global study surveying 300 media leaders revealed that economic pressures and reduced advertising budgets are primary factors driving workforce reductions. Niche and specialized publications, which serve smaller, focused audiences, have been especially susceptible. Challenges such as shorter attention spans, diminished referral traffic from search engines and social networks, coupled with the rise of artificial intelligence, have further eroded the visibility and revenue potential of these smaller digital newsrooms.
When confronted with revenue deficits, media organizations frequently turn to layoffs as a swift cost-containment measure. For instance, in 2023, Big Cabal Media, owner of TechCabal and Zikoko, trimmed its workforce by 19% despite recording a 180% surge in revenue during the first half of the year. This example underscores that even significant revenue growth may not be enough to offset rising operational expenses faced by digital publishers.
Operating on a free-access basis, Businessfront has likely struggled to maintain revenue streams amid declining advertising spend. Introducing a paywall in today’s fragile economic environment would be impractical, especially as some established outlets have recently removed theirs. For example, BusinessDay, a leading national newspaper, dismantled its paywall to better understand reader engagement, while Communiqué, a specialized publication, also lifted its paywall earlier this year to expand its audience reach.
To counterbalance the downturn in advertising income, many media companies are broadening their revenue models by emphasizing events and newsletters. These strategies enable more direct engagement with their readership and open up alternative monetization channels, helping to mitigate the impact of declining traditional traffic and ad revenues.