Johannesburg - About 400 Pick n Pay employees will be jobless in the coming months after the company retrenched workers to cut costs.
After initially offering voluntary retrenchments to employees, the retailer has been forced to adopt plan B of its turnaround cost-cutting strategy – retrenching employees – after they apparently did not have enough takers.
The voluntary retrenchments were offered in April, following the supermarket’s 30.8 percent drop in full-year profit.
Employees at Pick n Pay’s head and regional offices around the country were offered the standard week’s pay for every year of service. They were given until August 8 to apply.
On Friday, Pick n Pay spokeswoman Tamra Veley said the retailer had decided to retrench some employees, in addition to those who had applied for voluntary retrenchment.
“Pick n Pay said it is undertaking a restructure of its support offices to improve the effectiveness and efficiency of the business. The restructure will result in about 400 people leaving the company over the coming months,” Veley said.
Though she did not state how many employees had taken voluntary retrenchment and how many would be laid off, she said the 400 did include those who had taken voluntary retrenchment.
Thabo Mahlangu, national organiser of the SA Commercial, Catering and Allied Workers’ Union, said the union had not been notified about finalisation of retrenchments by Pick n Pay.