THE WHAT? South Africa’s Tiger Brands has announced it will ‘cut’ a significant number of jobs and restructure low-performing personal care brands as it experiences supply disruption and margin pressures due to COVID-19, according to a report by Reuters.
THE DETAILS The food and personal care company has also cancelled its interim dividend due to the trouble caused by the pandemic, with its first-half earnings per share falling 35 percent for the six months to March.
Chief Executive Noel Doyle spoke via a media call, stating that the company was looking at cost-cutting measures, including the possibility of the ‘significant’ job cuts.
THE WHY? With 11,200 employees in South Africa, the company also said that it may re-consider an annual dividend, which will be based on its trading performance.
Doyle continued, “We have to look at a couple of categories where we have been incurring significant losses.”
According to the company, reorganisation savings due to the cost cutting measures will total approximately 250 million rand.