Bleeding TransNamib to retrench 340 employees
20 September 2021 | Transport
TransNamib intends to retrench 340 of its 1 309 employees within the coming weeks, its CEO Johny Smith has informed public enterprises minister Leon Jooste.
The targeted employees included those nearing retirement and those in TransNamib’s non-core business units, Smith said.
“Through this exercise, the company is targeting a figure of a possible 154 employees who are nearing retirement, as well as an additional 186 employees who are currently in what has now become non-core business units,” Smith said.
The non-core business units include TransNamib’s former road operations, vehicle maintenance, service delivery and terminals sections, which Smith said had become redundant.
“Most of these employees are therefore currently being carried by the company in redundant capacities and can be considered excess to requirements to the core business which is train operations, properties and engineering together with supporting services,” Smith said.
TransNamib had attempted to redeploy the targeted employees but Smith said the Covid-19 pandemic had made it difficult for the company which had also lost revenue. The retrenchments were expected to cost TransNamib N$44 million. It would however drive down costs by N$25 million, Smith said.
TransNamib’s latest financial results show that it recorded a loss of N$80 million for the 2019 financial year.