In a surprising turn of events, CIC Group is set to undergo a substantial workforce shakeup that could see up to 75 employees facing an uncertain future.
The insurance giant, which had been basking in recent financial success, has announced plans to implement a mix of voluntary exits and potential redundancies as it embraces a leaner, technology-driven operational model.
This impending restructuring, constituting around 10 per cent of the firm's 728-strong workforce as of October, was revealed by CIC Group Chief Executive Officer, Patrick Nyaga.
The shocking move, aimed at creating a "leaner, flatter, and more transparent" organizational structure, follows a detailed review of the company's standing on the NSE.
Nyaga outlined the strategic goals behind the restructuring, emphasizing the optimization of vital capabilities, the elimination of functional and resource duplication, the drive for cost efficiencies, and the simplification of reporting lines.
The announcement has sent shockwaves through the CIC community, with employees anxiously awaiting further details on how the changes will impact their livelihoods.
"The expectation of the group is that this rationalization will yield the desired outcomes, leading to a more efficient and profitable group in the short, medium, and long term," stated Nyaga, adding to the heightened sense of uncertainty surrounding the imminent workforce adjustments.
CIC Group has clarified that while voluntary exits will be given priority, redundancies may be considered if deemed absolutely necessary.
This news comes as a surprising twist, given the company's recent financial achievements, including a 63 per cent surge in net profit to Sh1.09 billion in 2022 and the resumption of dividend payouts after a four-year hiatus.
The impending job cuts cast a shadow over the optimistic financial picture, raising questions about the underlying reasons behind the move, especially when the insurer had witnessed increased profitability in the first half of 2023.
As the shock resonates within the industry, employees and stakeholders await further details on the specific roles affected and the overall impact on the company's trajectory in the highly competitive insurance sector.