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Sameer Africa PLC ( SAMR.NR) said on Friday it will implement its redundancy program by closing its tyre business that will see 73 employees laid off by end of May.
The tyre maker company operates primarily in Kenya, with tyre operations in Tanzania, Uganda, and Burundi.
“…despite the implementation of several changes in our business operations and strategy, business has not improved and survival of the company is and remains a major challenge,” the Company said in reference to its redundancy notice in December.
Peter Gitonga, the acting managing director in a statement issued on Friday to the County Labour Office in Nairobi and the Amalgamated Union of Kenya Metalworkers, said the resolution was arrived at a Board of Directors meeting held on 20 April 2020 and resolved to close down the tyre business.
“The implication of this is that a number of positions/roles within the company particularly roles that are currently undertaken by employees who are engaged at the affected locations, will become redundant,” he said.
“It is therefore contemplated that approximately seventy-three employees drawn from both management and unionisable cadres will have their employment contracts terminated on account of redundancy.”
The Group recorded a loss in net earnings of KSh 182.8 Million in the half-year period ended 30th June 2019 compared to a loss of KSh 11.6 Million in the previous period.
