East African Portland Cement has announced plans to lay off a huge section of its employees in an attempt to salvage its current wage bill.
Affected employees will, however, be given an opportunity to re-apply under the condition that they take a 40 percent salary cut.
The news comes at the wake when the cement producer and supply says it spends about 8 million on salaries making it difficult for them to stay afloat.
An internal memo is said to have been issued with interested staff expected to accept the new idea by the company or else face an ax.
In 2018, East African Portland Cement had a workforce of around 936 but the number has since dropped to about 800.
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The workers were split into two categories that are the permanent staff and those on contract in a 50-50 ratio.
In the new structure, staff will be merged so as to salvage the company from its existing financial challenges.
Early next month the first bunch of workers is expected to be laid with the company estimating to spend 600 million in the exercise.
A golden handshake will be awarded to permanent staff including their accrued leave days and gratuity in regard to the period of employment.