Business / Companies
Unilever Zimbabwe to slash salaries by 50%
15 Feb 2017 at 05:52hrs | Views
Unilever Zimbabwe has slashed salaries by 50 percent as part of a restructuring exercise the company has embarked on after it was affected by Government's move to restrict the imports of some of its products and the challenges with foreign currency payments.
Unilever Zimbabwe is a net importer after it scaled down manufacturing at the country at the start of dollarisation.
However, fast moving consumer goods importations are not on top priority in terms of foreign currency allocation.
Already goods such as Handy Andy, Domestos and Sunlight Liquid are in short supply.
Well-placed sources say the current restructuring exercise is part of the company's response to Government's recent import restriction which adversely impacted
its operations and could ultimately result in the company exiting the local market altogether.
Unilever corporate affairs director for Southern Africa Sibonile Dube said the move is in response to the prevailing economic landscape.
"Following a review of our recent performance, Unilever Zimbabwe will be restructuring its operations in response to the prevailing economic landscape which has adversely impacted our business.
"Despite taking many prudent measures to ensure business continuity over the years,
the current economic challenges are such that the company has been compelled to make further strategic interventions to maintain the viability of our business," said Mrs Dube in an emailed response to The Herald Business.
"It has therefore become necessary to rescale some operations where appropriate as well as rationalise our employee numbers," she said.
Unilever Zimbabwe has been in the country since 1943.
Mrs Dube said the potential changes have been communicated to all employees and the process is being co-ordinated with employee representatives.
"We remain mindful of the social consequences to employees who will be impacted by this business transformation. Providing the highest degree of support to our employees during this period, remains our utmost priority," she said.
Source - the herald