Castel Malawi has announced that it is to retrench 300 employees within the next twelve months.
Through a letter signed by Castel’s Director of Human Resources Naomi Nyirenda that has been addressed to the employees, management has cited losses that the company has made over the past ten years.
Nyirenda has specified that high production costs of some of their products has made the company to be making losses hence the decision.
“Management has put in place various ways to ensure that we keep the company in business and one of the ways is to reduce staff numbers through retrenchments. This memo therefore serves to notify all members of staff that the company will retrench some of its workforce,” the letter says.
Those that are to be affected include workers whose performance has been poor, employees with disciplinary issues, workers close to retirement, employees identified as surplus to in their departments and workers whose positions will be declared redundant.
The fired employees will get severance allowances, one month salary in lieu of notice, leave grants and commutation for accrued leave days.
The company has assured all the employees it will handle the process of retrenchment as per labour laws of Malawi.
Castel produces soft drinks and alcogholic beverages in the country. Among the drinks include booster, Cherry plum, Cocopina and Squash.
Previously, the company was operating under the name, Carlsberg before it was sold to Castel group.