Another Global Company In Kenya To Lay Off 400 Workers Amidst Tax Uncertainties
G4S, a major global integrated security company, has revealed plans to lay off about 400 people over the next six months.
In a letter to the Ministry of Labour and Social Protection, the firm justified the decision to reduce business possibilities caused by the tough economic conditions.
According to the security service, the unfavorable economic conditions reduced revenue and, as a result, increased operating costs.
“We regret to advise the Ministry of Labour and Social Protection of the organization’s intentions to declare several positions redundant,” read part of the notice.
“This letter therefore serves as a notice of redundancy under the provision of the Employment Act, 2007 Section 40.”
Breaking: G4s to declare 400 employees redundant due to harsh economic times pic.twitter.com/TEFfmghEFo
— Cyprian, Is Nyakundi (@C_NyaKundiH) November 12, 2024
“The redundancy exercise is likely to affect approximately four hundred (400) employees based in various locations in Kenya in both categories of management and unusable cadres between 04 November 2024 and April 2025,” the statement added.
Despite the proposed mass layoff, the security organization reiterated its commitment to continuing operations in Kenya.
The corporation also notified the government of its resolve to apply tough solutions to help it secure jobs for Kenyans while sustaining performance.
“We wish to assure the Ministry of Labour that we shall adhere to all the minimum legal requirements stipulated for this kind of action,” the letter read in part.
Many Kenyans, including economists and politicians, have expressed conflicting views on G4S’s announcement.
While some saw it as a difficult but necessary business decision, others attributed blame to the government.
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While commenting on the topic, Chairperson of the Presidential Council of Economic Advisors David Ndii described the move as a common occurrence in most economies.
“In a market economy, businesses start and fail every day. Some hire some fire. Some grow some shrink,” Ndii commented.
“We measure economic performance by aggregates i.e. macro-level outcomes. As they say, one swallow does not make a summer. Further evidence why the law should be a second degree.”
Ndii was forced to speak out when Kenyans online accused the administration of having inverted priorities.
Another Global Company In Kenya To Lay Off 400 Workers Amidst Tax Uncertainties
