Copia Kenya Limited, a company under administration, has finally laid off 1,060 members of its staff in a significant restructuring effort effective Friday.
The move comes after a week of uncertainty following the appointment of administrators and a 20-minute staff meeting on Thursday.
"Unfortunately, your employment with Copia Kenya Limited (under administration) will be terminated, effective 7th June 2024," the termination letter areas.
"This decision is in no way a reflection of your performance or contributions to the company but rather a consequence of the current circumstances."
The restructuring plan involves a reduction in workforce with employees required to return company property, including laptops and tablets, and sign termination letters.
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This decision, according to Copia, is a difficult but necessary step to "ensure the business is right sized and right shaped" for future success.
The company emphasized that the terminations are not a reflection of employee performance but rather a consequence of "the current circumstances" and the need to reduce operational costs.
While Copia has committed to paying a one-month salary and adhering to Kenyan labour laws regarding accrued leave days, a specific timeframe for these payments remains unclear.
This lack of clarity has caused anxiety among employees, especially considering the recent delay in May salaries.
Despite the layoffs, Copia maintains its commitment to the Kenyan market. I
"The main objective of the Administrators is to maintain the Copia business as a going concern... We continue to work closely with management to achieve a successful outcome and to raise capital from new investors for the continuing Kenya business," the company stated.
The statement also hinted at potential re-employment opportunities for some terminated staff.
"In due course management will communicate with staff regarding employment opportunities in the continuing business," Copia said.
The future of Copia Kenya remains uncertain.
While the company seeks new investment and aims for long-term success, the immediate impact will be felt by its departing employees who now face the challenge of securing new employment while awaiting their severance pay.