In response to the prevailing economic challenges in the country, Unga Holdings Limited, encompassing Unga Limited and Unga Farm Care (EA) Limited, has announced its intention to declare redundancies as part of a strategic organizational restructuring.
The company in a house notice cited persistent difficulties stemming from the tough economic climate, with volumes and margins experiencing a decline.
Unga Limited's sales, in particular, have consistently fallen below budget, leading to diminished capacity utilization and unsustainable high fixed costs.
Facing the overarching imperative of financial viability both in terms of profitability and cash flow, Unga Holdings Limited has undertaken various initiatives to align costs with anticipated business performance.
Despite these efforts, the company has deemed it necessary to restructure its organization, resulting in an unavoidable loss of jobs.
"We have worked on several initiatives to bring our costs in-line with anticipated business performance but, despite this, it has become apparent that we also need to restructure our organization. This will result in loss of jobs," the notice read.
"This letter, therefore, serves as a notification of our intention to declare redundancies."
The official notification regarding the intention to declare redundancies was issued by the company, emphasizing ongoing efforts to explore alternatives to compulsory job cuts.
In the event that compulsory redundancies become unavoidable, Unga Holdings Limited has committed to minimizing the impact on its workforce, with an estimated maximum of fifty (50) employees across different locations and departments.
"We are actively continuing to explore alternatives to compulsory redundancies and, if this proves unavoidable, we will work hard to minimise the number of employees affected," Unga announced.
"Our current assessment of the situation suggests that we are anticipating compulsory redundancies affecting a maximum of fifty (50) employees in different locations and departments."
The selection process for redundancies will adhere to objective and quantifiable criteria, including skill, ability, and reliability.
The company encourages employees to share their concerns, ask questions, and seek clarifications, assuring that all raised issues will receive a response.
In addition, Unga Holdings Limited has extended support to affected employees and their families through ICAS, the Employee Assistance Programme partners, offering assistance and resources during this transitional period.
"In addition, Unga Holdings Limited has extended support to affected employees and their families through ICAS, the Employee Assistance Programme partners, offering assistance and resources during this transitional period," the notice read in part.
This announcement reflects the challenges faced by many organizations in adapting to the economic landscape, highlighting the company's commitment to maintaining financial stability while acknowledging the human impact of such decisions on its workforce.