Java House announces staff layoffs
Coffee house chain Java House has announced staff layoffs as it strives to stabilize its operations from COVID-19 occasioned disruptions.
Following a meeting with staff earlier on Thursday, the company has indicated it will initialize the staff rationalization exercise through a voluntary separation option program that will provide an incentivized option to workers willing to resign.
“From the beginning of the Covid-19 crisis, even as restrictions were eased and food and beverage businesses such as ours begun to reopen their doors, demand has been materially lower than previous years levels and this will continue for a period of time. During the last few months we have looked at every aspect of cost reduction in the business, including re-negotiating rents, our procurement of raw material, our labour schedules, our utility costs etc. and these are now moving towards a very low level in line with expected sales,” the company noted.
“Unfortunately the business is potentially over resourced at the current level of performance. Hence Java has had to make a difficult decision to offer the Program to provide our staff the opportunity to receive a lump sum financial payment from the company allowing them to create options for themselves following the prolonged effects of C-19. It is also a way in which we can offer an alternative to those unable to work or on rotation to allow them pursue other interests.”
Staff who have completed at least one and a half years of service within the group will qualify for the program which stretches across branch operations, commissary, support and operations limited.
Staff who opt to take up the option will receive benefits among them a 15 days’ pay for every complete year worked, an additional one and half months pay and compensation for unutilized leave days.
The voluntary resignation program runs to November 27.
Java is expected to make its decision on further layoffs depending on the response from the voluntary separation option program.
Java House is headquartered in Nairobi and runs in excess of 60 chains across East Africa. The chain opened its first store on Ngong road in 1999.