CMC Motors to lay off 169 employees

April 25, 2023

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Motor vehicle dealer CMC Group has announced plans to lay off 169 of its employees.

The employees affected are in both management and unionisable categories with the company intending to undertake the redundancy in 3 phases between the second and fourth quarter of 2023.

The first phase of the layoffs will take effect on April 25.

“Please note that employees who work in Admin & Support, Finance, IT, Legal, Logistics, Senior Management, Parts, Procurement, Projects, Sales, and Service departments will be affected by the redundancy,” said CMC Group Managing Director Sakib Eltaff in a letter addressed to the Amalgamated Union of Kenya Metal Workers.

“We forward a list of the roles that will be declared redundant. This list sets out the roles that will be affected.”

Eltaff attributed the layoffs to Ford, Suzuki and Mazda terminating their distributorship contracts with CMC Group.

“As a result of the termination of these distributorship contracts coupled with the changes in the market demand, CMC Group is re-organizing its business in line with a growth strategy that will see it place great focus on the agricultural sector,” he said.

“This will result in a reduction in the number of roles and the resources required to execute the remaining functions.”

Eltaff however insisted that all employees facing the axe will be paid their terminal dues in accordance with their contracts of employment.

This will include; salary for days worked up to the date of termination, salaries in lieu of notice based on the number of years and CBA and severance pay for each completed year of service based on the number of years and CBA and pay in lieu of leave days accrued but not taken.