Large-Scale Layoffs At EABL Despite Huge Profits
East Africa Breweries Limited has announced plans to sack 100 of its employees as it restructures its operations in Kenya.
The lay-off is one of the largest recently seen in Kenya’s corporate sector.
London-based brewer Diageo, the parent company of East African Breweries (EABL) has opted to outsource its labour from other markets leading to the massive layoffs.
“The business services requirements and processes across Diageo Africa are changing and as such Diageo will be conducting a review of the center to determine where best to locate technical services roles for Africa in either Europe or Asia,” the Diageo stated.
The departments that will be hit hard in this latest dismissal are the human resource and the financial unit. Reportedly, the retrenchment process is expected to be completed by March 2020.
The plans to lay off staff has surfaced after the regional beer maker announced its net earnings for the 12 months’ period to June 30.
The NSE listed company made Ksh11.5 billion in net profit compared to the previous year. The increase represents a 52 percent jump in pretax profit for the year to June.
The growth has been attributed to high growth levels recorded in its regional subsidiaries in Tanzania and Uganda. Uganda, Tanzania and Kenya sales revenues grew by 8 percent, 20 percent, and 13 percent respectively.
Featured Image Courtesy: EABL