Mombasa based Ashton EPZ declares redundancies » Capital News

NAIROBI, Kenya, Apr 11 – Ashton Mombasa Apparel (AMA) has announced cutting its staff’s headcount citing unfavorable economics.

In a statement, the Export Processing Zone (EPZ) asserted that the move has been affected owing to a significant reduction in contract orders from its customers.

“While we understand the impact this may have on the affected individuals, we remain hopeful that business conditions will improve in the future. Should there be a resurgence in demand and an improvement in our operational requirements, we will prioritize rehiring staff accordingly,” read the statement.

 Likewise, the company noted that it will not renew the contracts of some of its workforce due to the prevailing business conditions.

“It is important to note that this decision is solely driven by the current business needs, which necessitate a reduction of about 1,900 employees to align with the reduced demand from our customers. We deeply value the contributions of all our employees, and this decision was not made lightly,” it added.

It has however said it will settle all the dues of the retrenched employees in accordance with the terms outlined in their contracts.

The company had in September last year served its employees with redundancy notices following the acquisition of its shares by Nava Apparels, a Mombasa based company.

The Completion Authority of Kenya (CAK) would however in January flagged the impending layoffs of nearly 7000 staff members at the time as a pre-condition of its buyout by Nava.

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