This archive report was first published on 15 June 2020.
On June 15, 2020, Ernst & Young, one of the world's four biggest audit firms, sent shockwaves through its Nairobi office by laying off 42 senior and long-serving managers.
The move has left many questioning the motivation behind the decision, especially given the firm's strong financial position in Kenya.
According to outgoing CEO Gitahi Gachahi, the firm has been performing well financially, raising questions about the head office's decision to lay off the workers.
"The redundancy decision could not have been informed by sub-optimal performance or profit dilution," Mr Gachahi said, questioning the wisdom of the decision.
Ernst & Young's Kenyan office falls under its Eastern cluster, which includes Ethiopia, Kenya, Uganda, Tanzania, and Rwanda. Sources at the company said some regional offices do not have sufficient staff, making the redundancy notices all the more questionable.
"We refer to the meeting held with your service line leader on 2nd June, 2020, and the letter notifying you of the firm's decision to terminate your contract of employment on account of redundancy issued on the same date," says a letter sent to one of the affected staff.
The workers are worried that if they are rendered jobless during the Covid-19 pandemic period, they will be unable to secure jobs in other institutions given that companies are scaling down operations to cut costs and preserve their cash reserves.
They also protested that they were not consulted on whether they could be put on lower pay as has happened in other organisations.
