Fin24 has reported on an internal memo that mentions the planned retrenchments.
Nearly half of Avis Budget Rent-a-Car (RAC) employees will be affected by parent-company Barloword’s group-wide retrenchments. Fin24 has reported on an internal memo from Barloworld, which states that, because there was no revenue being generated, approximately 978 employees out of 2036 at Avis Budget Rent-a-Car would be impacted by the retrenchment consultations.
Barloworld issued a trading statement last week in which it explained that its Automotive and Logistics businesses had been impacted by the stringent lockdown regulations. Specifically, a significant percentage of the RAC business was driven by the on-airport market segment and the closing of borders had resulted in fleet utilisation “declining from over 75 percent before the pandemic to below 30 percent.
Other companies in the Automotive and Logistics business are Motor Trading, Avis Fleet, and Logistics, for which operational activities were limited to activities that supported essential services and thus likely to have also seen significant loss in revenue albeit not as bad as RAC.
That said, Barloword indicated that activity was now beginning to improve on the back of easing lockdown restrictions.