East African Portland Cement is set to lay off all its employees in a restructuring plan expected to save the company from further losses.
Through a memo, the Athi River-based firm declared all positions in the company redundant, citing an unprecedented cash crunch.
The acting Managing Director Stephen Nthei, claimed that increased competition had dealt them the blow.
Nthei also stated that the Nairobi Securities-listed company had been making losses of up to Ksh8 million daily, which has impacted negatively on sales and subsequent profitability, hence the move.
The cash strapped company reported a 30 per cent increase in loss to Ksh1.26 billion for the half-year ended December 2018, up from the Ksh949.2 million loss it posted six months before.
“Currently we suffer daily losses of up to Ksh8 million. In the last three years, the company’s market share has also dropped drastically impacting negatively on sales.
“As a result of the restructuring program, all positions in the company will be declared redundant and the employees released,” stated Nthei in his memo to all employees.
However, to continue with operations, the jobs will be reconfigured and consolidated to a leaner organisational structure.
Currently, it is estimated that the company has some 2000 employees both on contract and permanent and pensionable terms.
The first batch of affected employees is expected to be released within a month.
