Hundreds of EABL, Telkom staff to be rendered jobless

By Steve Umidha

Wednesday marked one of the most heart-wrenching news for the business world with two corporate giants East African Breweries Limited (EABL) and mobile operator Telkom Kenya announcing hundreds of layoffs – with the move likely to affect livelihoods big time.

The London-based brewer Diageo, the parent company of East African Breweries (EABL), is set to retrench more than 100 employees working at its business support centre in Nairobi.

Telkom Kenya on the other hand announced it would retrench at least 575 employees who are now serving a one month notice to pave way for the planned merger with Airtel Kenya.

In an internal memo, Telkom Kenya CEO Mugo Kibati informed staff that the firm had informed the affected employees who have been declared redundant and the relevant authorities.

Communication Workers Union Secretary General Benson Okwaro confirmed being aware of the retrenchment, noting that the union has scheduled talks with the management next week on exit packages for affected workers.

In February this year, Telkom Kenya and Airtel Kenya announced a partnership that will see the two telcos merging their mobile, enterprise and carrier services in Kenya through a Joint Venture Company christened Airtel-Telkom.

“In accordance with the provisions of Section 40 of the Employment Act, 2007, we have notified the Communications Workers Union (COWU) and sent individualized letters to staff where applicable as well as to the county labor offices, giving one-months’ notice with effect from July 31st, 2019 of our intention to terminate the employment of approximately 575 of our employees on account of redundancy as a result of the transaction,” reads the memo in part.

“The business services requirements and processes across Diageo Africa are changing and as such Diageo will be conducting a review of the centre to determine where best to locate technical services roles for Africa in either Europe or Asia,” EABL said in a statement.

The brewer targets up to 100 employees who are set to lose their jobs, with most of the layoffs concentrated in the human resource and finance desks. The company further said the retrenchments will be done gradually and conclude in March next year. Diageo said the changes will not affect the core functions of its local subsidiary EABL.