MORE than 260 Real People employees are bracing for the axe as the company prepares to phase out its unsecured lending operations.
It plans to refocus its business on “purpose-driven lending” and growing its operations in East Africa.
The decision will affect more than 12% of the company’s 2200 South African-based work force, of whom half are based in East London, with the rest in Johannesburg and Durban.
Only a fraction of East London employees will be affected by the decision, said Real People Group chief marketing officer Bonge Mkhondo.
Some of the group’s 60 branches countrywide will be closed and the company wants to sell its cellular division.
Mkhondo said no final decision had been taken, adding that the company would consult employees who would be affected by the decision.
“ will allow the group to focus more resources in developing its businesses in Eastern Africa , specifically focusing on further growth in its SME finance offering and launching its home improvement finance offering in that region.
“As a consequence of this refinement in focus, it is envisaged that the group will also dispose of its cellular business, which comprises an insignificant part of the group’s operations,” said a communication sent to the Daily Dispatch.
Last month Real People told the Dispatch that the company would move its head office to Johannesburg, citing a scarcity of “specialised” talent, funding and transport networks in East London.
The Dispatch understands that the company has been in the process of informing stakeholders, including employees, suppliers and shareholders, since the beginning of the month. It said its local suppliers would not be affected and only a fraction of its local employees would be affected.
“The number of jobs potentially affected by this decision is about 265 out of a total group employee complement of 2200 people.
“Sixteen of the potentially affected employees are located in East London.
“This is out of a total East London employee complement of 1100.
“A consultative process is being followed with the employees who potentially could be affected,” Mkhondo confirmed.
The company was started in East London in 2001 as a provider of unsecured lending, where no collateral is provided, and over the years it has included cellphone contracts in its service offering.
It has 650 service points at building and warehouse outlets including Build-It Group, the Essential Group, DIY Depot, Timber City and Penny Pinchers.
Mkhondo said the reasons for this transformation were related to “an evolution in the values of the group” and the business sense of the “purpose-driven” lending segments. —
Real People staff face the axe
It plans to refocus its business on “purpose-driven lending” and growing its operations in East Africa.
The decision will affect more than 12% of the company’s 2200 South African-based work force, of whom half are based in East London, with the rest in Johannesburg and Durban.
Only a fraction of East London employees will be affected by the decision, said Real People Group chief marketing officer Bonge Mkhondo.
Some of the group’s 60 branches countrywide will be closed and the company wants to sell its cellular division.
Mkhondo said no final decision had been taken, adding that the company would consult employees who would be affected by the decision.
“ will allow the group to focus more resources in developing its businesses in Eastern Africa , specifically focusing on further growth in its SME finance offering and launching its home improvement finance offering in that region.
“As a consequence of this refinement in focus, it is envisaged that the group will also dispose of its cellular business, which comprises an insignificant part of the group’s operations,” said a communication sent to the Daily Dispatch.
Last month Real People told the Dispatch that the company would move its head office to Johannesburg, citing a scarcity of “specialised” talent, funding and transport networks in East London.
The Dispatch understands that the company has been in the process of informing stakeholders, including employees, suppliers and shareholders, since the beginning of the month. It said its local suppliers would not be affected and only a fraction of its local employees would be affected.
“The number of jobs potentially affected by this decision is about 265 out of a total group employee complement of 2200 people.
“Sixteen of the potentially affected employees are located in East London.
“This is out of a total East London employee complement of 1100.
“A consultative process is being followed with the employees who potentially could be affected,” Mkhondo confirmed.
The company was started in East London in 2001 as a provider of unsecured lending, where no collateral is provided, and over the years it has included cellphone contracts in its service offering.
It has 650 service points at building and warehouse outlets including Build-It Group, the Essential Group, DIY Depot, Timber City and Penny Pinchers.
Mkhondo said the reasons for this transformation were related to “an evolution in the values of the group” and the business sense of the “purpose-driven” lending segments. —
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