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Bakers Inn Restructures, Lays Off Workers After US$1.08 Million Loss

7 months agoFri, 16 Aug 2024 14:39:13 GMT
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Bakers Inn Restructures, Lays Off Workers After US$1.08 Million Loss

Confectionery producer Bakers Inn is undergoing significant staff cuts following a major restructuring effort aimed at streamlining its distribution processes after incurring a loss of US$1.08 million.

According to the Zimbabwe Independent, Bakers Inn previously handled its logistics independently through Bakers Inn Logistics (Pvt) Ltd, a subsidiary of Innscor Africa Limited.

Simbisa Brands Limited, Bakers Inn’s parent company, was formerly part of Innscor before being unbundled into a standalone entity in 2015.

Simbisa has now decided to merge its sales and distribution operations with logistics under a single management structure within Bakers Inn.

This move has resulted in the redundancy of several positions, leading to a wave of retrenchments.

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Documents obtained by the Zimbabwe Independent reveal that the restructuring was driven by escalating operational costs, which had severely impacted the company’s viability. The documents, dated July 1, read in part:

Bakers Inn Logistics division has been operating as an independent unit from the Bakers Inn Sales and Distribution division.

The business has consolidated them both and this has eradicated the need for parallel structures, especially in the finance and administration department and the human resources department.

The employer has undertaken a restructuring exercise, which has resulted in the posts of the selected employees being redundant, thereby necessitating the termination of the contracts of employment by way of retrenchment.

The move to restructure the company has also been necessitated by high operational costs in an increasingly difficult macroeconomic operating environment.

It has emerged that Bakers Inn has been operating at a loss for the past two years, primarily due to high exchange rate losses and the rising cost of doing business. The documents further state:

For example, the company realised an after-tax loss of US$1,08 million for the nine months ended 31 March 2024 and an audited loss of US$1,14 million for the year ended 30 June 2023.

This has been a result of high operational costs in an increasingly difficult macroeconomic operating environment where business performance was impacted by large exchange losses from the weakening of local currency on ZWL-denominated receivables, an increase in the cost of doing business arising from the change in VAT (value added tax) status for the baking industry from zero-rated to exempt.

According to the documents, the VAT change alone cost the company US$110,000 in the first quarter of the year.

As part of its restructuring efforts, Bakers Inn has handed over the operations of several depots to partners, who will take on the responsibility of supplying bread to those areas at their own expense.

This transition has resulted in the redundancy of numerous employees at those depots.

More: Pindula News

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26 Comments

Zigi boy · 6 months ago
Aah bakers inn ndochingwa chacho vana lobels vakafa kare
Joseph · 7 months ago
Ndavatipowo bsa tishande zvedu
bread 🍞 winner · 7 months ago
chichatengwa naani ini makurongra chingwa chacho pasi kudaro kkkk
gebus · 7 months ago
haivhari one Mari vairana loss cei vakadii kuvhara kare
Citizen · 7 months ago
They operate at a loss trying to please the Zanu gvt, now it has turned against them. These f o o l i s h bootlickers.
HiLLBiLLIES VOLkSWAGEN 0774857233 · 7 months ago
DEPUTY MINISTER OF FINANCE CDE DAVID MNANGAGWA TINOKUMBIRAWO KUTI MUBATSIREWO BAKERS INN ISAVHARE
George · 7 months ago
Mr /Mrs chingwa, are they under the bakers inn brand?
Zgi · 7 months ago
Zi
nurse aide · 7 months ago
Haiwa takavaudza kuti regai kucheka chingwa mapanga tinawo, vakaita nharo. Imwe cost cutting iyoyi
laugh emoji2
Sadc Makatukura · 7 months ago
kkkk
Attack · 7 months ago
Kkkkkkkkk
Lilly Tee 💕 · 7 months ago
Mborinj dzavo
unru!ÿ · 7 months ago
hire me I can settle this... my cup of coffee
Ediots · 7 months ago
Ipapo rimwe riri kuti we are open for business when in actual fact the business environment is very hostile and devoirs its own. Mbavha chete ndodzinotapirirwa muno vana Zvivharo, IDhi
Jah🇿🇼Tsvarie-07 · 7 months ago
These days mbudzi inotofamba netambo kuitira kuzvisungirira painoda kudya, ikamirira kusungirirwa inofa nenzara 😀😀😀
GWEEE · 7 months ago
Taizviziva kut hazvina kwazvinoenda ne ongoing situation yeExchange rates plus changes of currency zvakaoma
fortuner · 7 months ago
plus automation on their new branch.basop they will fanikalo increase bread price
Tintin · 7 months ago
sad sad development. one those businesses you naturally think are pulling in millions in profits.☹️☹️☹️
Anonymous · 7 months ago
Poor management strategies and spending.
𝕸𝖆𝖗𝖆𝖛𝖆𝖟𝖆 · 7 months ago
This is the aftermath of Zig, brace up for the worst
Anonymous · 7 months ago
Not at all. They did not play their game well. Plus overspending.
Citizen · 7 months ago
They operate at a loss trying to please the Zanu gvt, now it has turned against them.

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