G4S, the London-headquartered private security company, will lay off 400 employees in Kenya after struggling with profitability due to declining business activity and rising expenses. The layoffs will take effect from November 4.
G4S has over 10,000 employees in Kenya who provide money in transit services to banks and private security to companies and homes.
“The redundancy exercise is likely to affect approximately four hundred (400) employees based in various locations in Kenya in both categories of management and unionsable cadres between 04 November 2024 and April,” G4S Kenya’s human resource director Helgah Kimani said in a letter.
GS4 said the affected employees will start leaving the company over the next six months. The redundancies will affect staff across various locations in Kenya, including both management and unionised staff.
“We have every intention of implementing solutions that will secure the employment of our employees whilst sustaining positive business performance,” G4S added.
Per Kenya’s Employment Act, employees declared redundant are entitled to severance pay calculated at a minimum of 15 days’ basic wages for each completed year of service.
G4S’s redundancy notice also coincides with a similar announcement from Tile & Carpet Centre, a Kenyan supplier for building and interior products.
In a letter to its employees, the company said that the notice, effective 6 December 2024, was reached after reduced production demand and economic challenges.
“Due to a decline in production demand, economic challenges, and strategic realignment, it has become necessary to downsize operations at our production plant to maintain the company’s long-term viability,” Tiles & Carpet said in a letter to employees on November 6.
G4S Kenya and Tile & Carpet cite economic challenges as a key factor influencing their restructuring decisions, signaling broader financial strains affecting various sectors.
The wave of job cuts and downsizing, including the administration of companies like iProcure, Copia, and Sendy signals a struggling business environment in Kenya. Economic pressure, high costs, and challenges in scaling operations amid market uncertainty are straining established firms and startups, reflecting a broader instability in the economy.
According to a survey by the Central Bank of Kenya (CBK), CEOs in Kenya plan to lay off employees due to the high cost of living, high taxes, reduced customer numbers, and declining business performance. Key findings from the survey show that non-bank private sector companies intend to cut 19% of their workforce, up from previous surveys.
