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Tongaat Hulett Zimbabwe To Lay Off 1,000 Workers

2 months agoThu, 16 Jan 2025 07:55:42 GMT
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Tongaat Hulett Zimbabwe To Lay Off 1,000 Workers

Sugar producer Tongaat Hulett Zimbabwe plans to lay off 1,000 workers by August this year as part of a cost-cutting strategy to navigate the country’s currency instability and inflationary pressures.

As one of Zimbabwe’s largest employers, Tongaat Hulett Zimbabwe currently has a workforce of 16,000.

The company operates two sugar mills in the country, with a combined capacity to crush 3.5 million tons of sugarcane annually.

However, the company has been grappling with rising labour and fertiliser costs, as well as losses from the country’s volatile currency.

Tongaat Hulett Zimbabwe spokesperson Dahlia Garwe told Reuters that the layoffs will be carried out in three phases, with 500 employees from each of the company’s mills in Hippo Valley and Triangle being affected between February and August. Said Garwe:

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It is very difficult to manage such a large workforce, so we need to look at ways and means of becoming a lot more efficient in how we do our business.

The company reported that its profit margins have dropped by 55% since 2022, while labour costs have surged by 113%, leaving the sugar producer burdened with huge debts. Said Garwe:

It is part of a strategy to bring our costs under control and put the company on an even path.

Tongaat Hulett Zimbabwe has said its “unprecedented operational challenges” are unrelated to the ongoing business rescue process at its South African parent company.

In October 2022, Tongaat Hulett’s South African operations entered business rescue proceedings following an accounting fraud scandal.

As part of the business rescue plan, Tongaat Hulett is in the process of selling its Zimbabwean assets—comprising the wholly owned Triangle Sugar Estates and a 50.3% stake in Hippo Valley Estates—to a Mauritius-registered investment company.

More: Pindula News

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19 Comments

Anonymous · 2 months ago
Pa 1 000 apa kana paine vasina mapepa more than 15% will cross into South Africa voita ana zama zama to zoudzwa kuti vamwe vafira mumigodhi. Shame
blaster · 2 months ago
mbudzi dzavanhu mese nyararai pane zvamunoziva hre
Anonymous · 2 months ago
Vanonzi Dr Dalia Garwe sei usina respect iwe, anyways chero vakadzingwa avambofanane nesu coz vane mapepa 😆😆😆
Anonymous · 2 months ago
This is hardly a surprise after the government raised the payments to the growers to an unsustainable level, in a country where the growers were already paid more than in any other African sugar industry
jobho · 2 months ago
pacha**** munhu paChiredzi apa chi**** changara chakawanda
Magayisa · 2 months ago
thank u s class weather update inodiwa wena
ED Lite · 2 months ago
Handiti Chiredzi ndovaka voter here?
Ediots · 2 months ago
mega deals
Wayne · 2 months ago
ndavauye tiswere tese pano kkkkkk ma1 aya
Ma1 · 2 months ago
Zvabhenda vakomana poda vane ropa kwaro vasare pabasa asi mukombe uyu ngaupfuure asi Chi****,Mbavha neMajere achazara Kuzvipatara gvt sanai kuwedzera workforce because mimba dzichawanda ipapa,majere the same mhondi dzichawanda futi
Anonymous · 2 months ago
Manje sooo? Iro gore richitanga kudai wotaurirwa izvi,zvoopera mushe here. Ummmm pakaipa pakaipa!!
korruptPRIEST 🇿🇼 · 2 months ago
Wootoona kut ma1. 6kg eshuga arikumiswa arikubva kuTongaat wotoona gvt yaburitsisa vanhu basa
🤦🏽‍♂️ · 2 months ago
Mauritius based investment company...I suspect Sakunda
S. Class · 2 months ago
PINDULA CAN YOU KINDLY UPDATE US ON THE WEATHER FOCAST
Satan 👹 · 2 months ago
chih'u'r'e nechimbavha chichawanda pachiredzi
ZimSketch · 2 months ago
Nhamo yatanga paChiredzi.... almost every economic activity depends on Tongaat
1

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