Cash Strapped Tuskys Supermarket Announces New Wave of Layoffs
Kevin Namunwa  |  Sep 24, 2020

Struggling supermarket chain Tuskys  has announced a fresh wave of staff layoffs barely a week after it received Ksh 500 million from a Mauritius-based private fund.

The new wave of terminations took effect on 22nd September 2020.

In a letter addressed to the affected employees, the retailer cites ongoing business operation realignments, adding that all affected employees will receive payment in lieu of the termination notice, including accrued leave days as well as severance pay.

The employees whose contracts have been terminated will receive their terminal dues on 13th February 2021.

The retail chain had previously sought to slash staff salaries by between 20% and 30% as a consequence of the reduction of weekly work hours from 45 to 36.

However, the employees challenged the nature of salary reductions and altercation that finally ended in court in July this year.

In explaining the latest layoffs, Tuskys also argued that the global Covid-19 pandemic has led to a reduction in business. This, according to the retail chain, has made Ksh 200 million monthly wage too heavy to shoulder.

This year, Tuskys has already laid off staff twice with more branch closures imminent. To date, the retailer has closed five branches including two in Eldoret town, one in Uganda, and another at the Komarock Mall.

Tuskys Kisumu Branch reopened on 21st August, after a short closure on 20th August over rent worth Ksh 26 million. The retailer paid Ksh 15 million, promising to clear the balance on 24th August.

On 25th August, board chairman Bernard Kahianyu announced that the retailer had secured over KSh2 billion in financing that will address its capital constraints.

Categories: Most Visited
Cytonn Weekly MPC Notes