52 employees of Sameer Africa Company are set for a sack as the tyre distributor seeks to lay off some members of its staff due to the hard economic times.
The limping firm is also set to close down several outlets across the country beginning February 1, the same date when the affected employees will begin being laid off.
The company, through its Managing Director Peter Gitonga, says that the layoff will affect both management and unionisable cadres.
“It is therefore contemplated that approximately 52 employees drawn from both management and unionisable cadres will have their employment contracts terminated," he said in a notice to the Nairobi County Labour Office.
He added that the move is in line with a new decision to make the company, which ceased producing its own Yana brand in 2016, into a trading and distributorship firm.
Chairman Erastus Mwongera confirmed the notice, also confirming that the targeted employees will be paid a retrenchment package.
"We have been restructuring since we changed the business model from manufacturing to retail. This comes with adjustments," he added.
The company currently has 168 employees, which is a result if a regular reduction of employees over recent years. The firm has also been making millions in losses in recent years.