NAIROBI, Kenya, May 29- East Africa Portland Cement is set to fire some of its employees through an early voluntary retirement program.
The group’s acting managing director Stephen Nthei in a statement said that the application is open to all workers where interested parties have between May 28 and June 15 to submit their details.
According to Nthei, the VER program is aimed at supporting the firm’s initiative to develop a sustainable business model in the long run for prosperity.
“East African Portland is committed to regain its position as the regional leader in the provision of cement, Innovative cement products and solutions. The restructuring takes cognizance the interests of the various stakeholders in the course of the business rejuvenation process,” said Nthei.
The announcement comes barely a year after the cash strapped company fired over 150 employees and its top managers in 2019 in a restructuring plan that was expected to save the company from further losses.
The layoff process cost the company Sh281.9 million in the half year ended December 2019.
The costs contributed to a hike in the firm’s expensed which saw its net loss increase by 24.4 percent to Sh1.5 billion compared to Sh1.2 billion a year earlier.
The Nairobi Securities listed company had earlier mentioned that it was making losses of up to Sh8 million daily which has impacted negatively on sales and subsequent profitability, hence the move.
Last year, EAPCC’s recorded a net loss of Sh1.5 billion in the six months to December from Sh1.2 billion in a similar period in 2018 with its staff costs standing at Sh4 billion during the review period.