Barloworld looks to cut quarter of workforce
Logistics, transport and automotive group Barloworld says it could cut up to a quarter of its staff amid a cost-saving drive in the wake of the Covid-19 pandemic.
The group, which had just under 15,000 employees at its 2019 year end, will cut staff numbers by 20%-25% as it seeks to cut overhead costs by about R400m. It is also cutting non-essential capital expenditure and cutting salaries, as it prepares for a reduction in demand and pressure on prices.
The retrenchment process, which includes early retirement, is expected to cost R300m-R320m when it is concluded at the end of the current financial year to end-September.
Group revenue fell 12.2% to R25.2bn in its six months to end-March, with the group swinging into a R1.5bn loss, from profit of about R950m previously, as it battled volatile commodity prices and supply-chain disruption in the wake of the Covid-19 pandemic.
“While we have seen lower performance compared to the prior period, we have acted quickly to identify areas of exposure and implement austerity measures to minimise the impact on our business,” CEO Dominic Sewala said.
“Barloworld will continue to adapt and transform to align with the expected volatile and uncertain macroeconomic environment,” Sewala said.