This archive report was first published on 26 September 2019.
Sanlam Kenya Plc has joined a growing list of companies opting for job cuts to protect profit margins or stay afloat, painting a grim outlook for the corporate sector.
Published on September 26, 2019, the company announced plans to lay off tens of its staff as part of a cost-cutting strategy aimed at trimming operating costs by over Sh200 million.
Sanlam joins East African Breweries, State-owned East African Portland Cement, Stanbic Kenya, and Telkom Kenya in restructuring plans aimed at slashing payroll expenses.
The voluntary early retirement (VER) programme targets workers aged 50 and above, but is open to younger staff. Interested employees had until October 4 to apply for the scheme, which will be effective at the end of that month.
Chief executive Patrick Tumbo stated that the management has discretion on who leaves based on skills the company wants to retain.
Sanlam could not have afforded a restructuring programme last year when it plunged into a Sh1.5 billion net loss due to bad past investment decisions.
"You don't send people away empty-handed. When the harvest is good, that's when you can throw a party," Mr Tumbo said.
Under the scheme, employees will receive a month's salary for every three years of service, have a third of outstanding in-house loans written off, and retain medical cover for the remainder of the year.
