East Africa Portland Cement (EAPCC) has laid off all 2,000 of its employees in Kenya.
The company's Chief Executive Officer, Stephen Nthei, declared all job positions redundant and released all employees.
According to Nthei, the decision was made due to the company's financial struggles, with an average loss of Sh8 million per day affecting its daily operations.
"The company acknowledges that the exercise is a difficult decision but the best option in the present business circumstances," Nthei said.
As part of the restructuring, the company plans to merge roles and reduce salaries to keep the loss-making company afloat.
Nthei stated that the company aims to operate with less than 600 people earning less than their current salaries.
East Africa Portland Cement reported a 30 percent growth in loss to Sh1.26 billion for the half-year ended December 2018, citing increased output prices, slow market, and production challenges.
This is not the first time the company has laid off employees; in 2016, it dismissed 1,000 employees, and last year, 520 workers were also laid off due to a bloated workforce and unmanageable wage bill.
