News

Parmalat announces job losses on the cards

Parmalat has confirmed that are restructuring their company and joining the long list of private sector businesses who will be laying off hundreds staff.

The company announced the restructure of the distribution model in January and began implementation in the middle of May.

The company will be outsourcing some of its logistics distribution to external providers.

Warehouses in Polokwane, Nelspruit, Bloemfontein, Upington and George have already begun outsourcing.

The dairy product producer has not indicated how many workers are facing retrenchment.

Multichoice announced last week that they are retrenching 2,000 staff from their call centres and walk-in customer service centres.

Standard Bank announced in March that they will be closing 91 branches and laying off 1,200 staff due to banking becoming for digitised.

ABSA Group also announced they are restructuring and expected to retrench 827 staff.

The mining sector has also taken a knock with platinum producer Lonmin announcing they will be laying off 4,100 workers due to the lack of commercially viable ore.

Tongaat Hulett are undergoing restructuring and are expecting to cut 5,000 jobs.

Many companies are feeling the pinch of shrinking markets and government do not have the resources to deal with the high debt to GDP ratio, which is resulting in an economic crisis.