Manufacturer declares layoffs due to difficult business environment

Employees of a well-known manufacturing company in the country are facing job loss after the industry announced layoffs of several employees.

The company's management said in a notice that the decision was made due to the difficult business environment and rising inflation levels making it difficult to maintain current workforce levels.

“After careful consideration, some positions are no longer required. This is a very difficult decision and we understand the impact this will have on our employees and their families,” the notice reads in part. It's dark.

Employees are advised to prepare for redundancies, which are expected to begin on March 1, 2024.

The company has also adopted new business strategies aimed at increasing productivity and ensuring longevity in the market despite the current difficult economic conditions.

However, the company outlined in the notice that employees are entitled to pay their final dues as required by employment law.

According to the law, employees have the right to be notified of payments such as salary, retirement benefits and pension costs. On the other hand, employees who owe money to the company are also eligible for the deduction.

Part of the law states: “Employees who are declared terminated are entitled to non-cash vacation days and severance pay equal to at least 15 days for each year of service.”

Over the past few months, businesses employing hundreds of Kenyans have been sounding the alarm over rising inflation and tax hikes that are making it difficult to operate in the country.

Last week, the maize company announced it would cease operations and sell its properties for Shs400 million.

Private schools in Nairobi also closed last year due to the difficult situation that was putting a strain on the business community. The sudden closure left students and parents stranded.

A survey conducted by the Central Bank of Kenya in December found thatAs the economy worsens, more companies will be forced to lay off employees. Mass layoffs are expected to be announced between January and April 2024.