Eat N’ Go Limited, the parent company of Domino’s Pizza and Cold Stone, has announced plans to downsize its workforce due to ongoing business and operational challenges.
The company’s management in Kenya, cited a decline in revenue, profitability issues, and a bloated payroll as the primary reasons for the decision.
In a memo dated 22nd January 2025 seen by this writer, Eat N’ Go management informed staff of the impending redundancy, which will see 55 employees lose their jobs by 28th February 2025.
The move, according to the company, is necessary to ensure long-term sustainability.
Business challenges leading to downsizing
The company highlighted key financial struggles, including reduced revenues and rising operational costs, as factors necessitating the layoffs.
“An assessment of the staffing requirements has revealed that the company has an excess of 55 employees. These employees are therefore superfluous,” the memo read.
It further noted that reducing staff was a difficult but necessary decision to improve efficiency and profitability.
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Consultative eeting schseduled for affected employees
To address employees’ concerns, Eat N’ Go has scheduled a consultative meeting on 23rd January 2025, with two sessions planned to accommodate different shifts.
Acknowledging the impact of job loss, the company has assured employees that it will honour all contractual obligations.
“All affected employees will be paid their terminal dues in accordance with the law and their contracts of service,” the memo stated.
The company has also urged employees to handle the communication with utmost confidentiality.
The way forward
The redundancy at Eat N’ Go Kenya reflects the economic difficulties facing many businesses.
In 2024, G4S Kenya Limited officially announced a large-scale redundancy exercise set to affect hundreds of employees across the country.
In a "Notice of Redundancy" dated November 4, 2024, the company cited "harsh economic challenges" as the primary driver of this decision.
READ: Mass layoffs looming as CMC Motors shuts operations in East Africa after 40 years
Declining revenues and increased operational costs have left the company no choice but to restructure its workforce to maintain sustainable business operations.