Over 1,000 employees from a retail and e-commerce company, based in Ruiru, are set to lose their jobs following plans by the firm to declare several positions redundant.
In a notice dated Thursday, May 16, the company's Chief Executive Officer revealed that the management was forced to explore far-reaching reforms to cope with the tough economic times.
He added that the company hopes to navigate the tough terrain ahead but urged his employees to brace themselves for any outcome in the future.
"While we are working hard to try and overcome the hurdle, it is important to highlight that uncertainties lie ahead," read part of the notice.
"As a result, it is very likely that there will be a reduction in our workforce and it is possible that the payment of salaries could be at risk."
The CEO explained that the purpose of the notice was to inform the employees of a one-month notice of potential redundancies as the management begins to restructure.
During the period, the company will conduct a consultancy period - which indicates all engagements surrounding potential redundancies in the organisation. This will be conducted for all affected staff.
"If the Company implements a restructuring, about 1,060 roles could be eliminated from the Company's structure and the services of the holders of those positions could become superfluous and their employment could consequently be terminated on account of redundancy," the notice read in part.
The looming layoffs come days after an Australian mining firm announced plans to shut down its doors and exit the Kenyan market, resulting in job losses of over 800 job losses.
The management announced that it would exit the market following the depletion of titanium resources in December 2024.
The exits of these companies pose great financial implications for the job market as many youths grapple with unemployment.
According to the latest report by the Kenya National Bureau of Statistics (KNBS), Kenya's unemployment rate stands at 6.2 per cent with over 1 million youth lacking jobs.
