Diversified Financial Services provider, UAP-Old Mutual Group became the latest company to announce that its board had approved a restructuring plan to lay off about 100 people in its Kenyan business.
According to a memo sent on 27th January from the Group CEO Peter Mwangi to the staff, the exercise is “aimed at realizing synergies, and efficiencies for the whole group, eliminating the duplication of roles, reducing expenses and strengthening the financial performance of the affected business.”
“The adjustments/changes shall be conducted by each affected business separately but with the oversight at the Group level. Its estimated that the total number of roles across the Kenyan business that will be adversely affected by the Kenyan business will not exceed 100… and the group’s business outside Kenya will not be affected” Noted Peter Mwangi.
UAP-Old Mutual, was formed following a deal where Old Mutual acquired a majority stake of 60.7 per cent in UAP Holdings for Sh25.6 billion ($253 million) in July 2015 and assured employees of the two two entities that all of them would be absorbed in the new structure. The business has been struggling to streamline operations since the merger as it tries to become the first true one-stop shop for financial services in the country.