The wave of staff downsizing has caught up with Sanlam Kenya after it became latest firm seeking to reduce its workforce in bid to revive its struggling business endeavours.
The firm announced Thursday that its board had approved the a Voluntary Early Retirement (VER) program, which is a softer way that companies use to part with its employees, targeting its staff aged above 50 years.
Dr Patrick Tumbo, the Sanlam Kenya Group executive officer, said the employees who accept the offer will be released from the company’s employment effective October 31, 2019
The firm has promised the exiting workforce a befitting lay-off but did not reveal how many are targeted.
“The exiting employees will receive pension benefits in accordance with organisational Pension Scheme Trust rules and Retirement Benefits Authority (RBA) regulations,” read a statement from the firm.
The firm will also offer to the successful applicants, compensation for unused leave days.
Staggering profits, high cost of labour, production and a mass adoption of technology is among the reasons for companies that are laying off staff.
More than four firms hinted to get rid of more than a hundred employees by the end of the year.
Of the companies enlisted in the Nairobi Security Exchange 15 had signalled toughed times ahead due to dismal profits.
Sanlam now joins Telkom, Stanbic bank, East Africa Portland Cement who have are at various stages of downsizing.
Most firms first start by asking staff to volunteer to retire. If they fail to get the desired numbers, then they kick in the second phase, which is usually more painful, by declaring employees redundant.