Retail giant, Tusker Mattresses alias Tuskys, has announced a fresh wave of staff layoffs, barely a week after they received KSh500 million from a Mauritius-based private fund. The terminations took effect on 22nd September 2020.
In a letter addressed to the affected employees, the retailer cites ongoing business operation realignments, adding that all affected employees will receive payment in lieu of the termination notice, including accrued leave days as well as severance pay. To add salt to injury, they will receive their terminal dues on 13th February 2021.
Previously, as Citizen Digital reports, Tuskys had sought to slash staff salaries by between 20% and 30% as a consequence of the reduction of weekly work hours from 45 to 36. However, the employees challenged the nature of salary reductions and altercation that finally ended in court in July this year.
Additionally, the retail giant argues that the global COVID-19 pandemic has led to a reduction in business, making its KSh200 million monthly wage too heavy to shoulder.
Already, Tuskys has laid off staff twice this year, with the ghosts of branch closures still hanging over its neck. Presently, the retailer has shut over five branches, including two in Eldoret town, one in Uganda, and another at the Komarock Mall. Tuskys Kisumu Branch reopened on 21st August, after a short closure on 20th August over rent worth Ksh 26 million. The retailer paid Ksh 15 million, promising to clear the balance on 24th August.
On 25th August, board chairman Bernard Kahianyu announced that the retailer had secured over KSh2 billion in financing that will address its capital constraints.