The Foschini Group is laying off staff to cut debt
Voluntary severance packages are part of a cost-cutting exercise, says TFG HR director Senta Morley.
According to reports, The Foschini Group (TFG) is looking to raise up to R3.95?billion through a rights offer to reduce its indebtedness and has notified employees that it is in the process of laying off some staff to cut its debt.
Business Report spoke to TFG HR director Senta Morley who said the group had invited employees to apply for voluntary severance packages as part of a cost-cutting exercise to mitigate the impact of the economic fallout from the Covid-19 pandemic.
“This is a considered restructure and building of new capacity to ensure we have a sustainable future-fit business,” said Senta, adding that the retrenchment process followed last year’s launch of a business programme focused on optimising many functions in the business and reducing head office costs. “From February, we froze vacancies, and we continue to aggressively manage all costs in the business.”
The retrenchments come after the group reported on Monday that its turnover had declined 43?percent during the three months to the end of June due to lockdown regulations in South Africa, the UK and Australia.