Harare, (New Ziana) –Sugar producing company Triangle Limited on Tuesday announced a phased retrenchment of workers, citing ongoing economic difficulties that it is facing.
In a statement, managing director Tendai Masawi said the difficult choice is essential for ensuring the company’s long-term sustainability.
He expressed gratitude for the dedication and contributions of the company workforce, acknowledging their instrumental role in maintaining operations during these trying times.
Masawi outlined the escalating economic pressures that have burdened the company over the past three years, including soaring operational costs for essentials like fertilizer and fuel.
These challenges, exacerbated by rampant inflation, currency devaluation, and the inability to reclaim Vallue Added Tax on inputs, have severely hindered the company’s ability to operate effectively, he said.
“Profit margins have plummeted by 55 percent, while manpower costs have surged by 133 percent relative to revenue. The company has not generated positive cash flows from its operations for three consecutive years.
“These financial realities emphasize the urgent need for corrective measures to generate sufficient cash flows, reduce debt, and reinvest in our future.”
To navigate the challenges, Triangle Limited will implement the retrenchment process in three phases with the first one set for the end of next month, the second by the end of May this year, and the third by by the end of August this year.
Masawi said the carefully structured approach aims to manage the transition with sensitivity, recognizing the profound impact on employees and their families.
He said to support those affected, the company is committed to providing fair severance packages based on years of service, alongside access to emotional and psychological support programs.
“Triangle Limited intends to engage closely with union representatives and employee committees to ensure transparency and fairness throughout this process,” he said.
While acknowledging the challenges posed by the retrenchment strategy, Masawi framed it as part of a broader initiative—Project Zambuko—designed to restructure the business for stability and future growth.
“This decision stems solely from the economic challenges we face and does not reflect the commitment or performance of our dedicated workforce,” he said.
New Ziana