Massive layoffs shake some major companies in Ghana

Massive layoffs shake some major companies in Ghana

- Many workers in the private sector are being sacked

- So far, about five companies have issued out dismissal letters to workers

- The reason for these layoffs are relatively different but the timing is unprecedented

The third quarter of 2018 has seen massive layoffs especially in the private sector. YEN.com.gh has gathered that major firms, especially media establishments, are either slashing down salaries of workers or laying them off completely.

This development closely follows massive layoffs in the banking sector just after five local banks collapsed and got merged into the Consolidated Bank of Ghana (CBG).

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BXC Company layoffs

Already, management of energy supply firm, BXC Company says at least 200 workers of the company will be sacked in the coming days.

The human resource manager of the company, Anastasia Ankrah, has explained that the massive layoffs is because of the distribution system lose reduction agreement by state-owned power distributor Electricity Company of Ghana (ECG) under the concession arrangement.

“So basically out of the 600 workers, 400 workers have been laid off. The 200 that are left are still being paid but by September they’ll also be laid off. The reason being that the 400, no job presently for them to do. The 200 that are even left we have very few jobs on hand now to do, and they’re being paid till the end of September when we will terminate their employment based on the letter we received from the lawyers of ECG,” she revealed.

Vodafone

The Herald newspaper has claimed that management of Vodafone is issuing out dismissal letters to workers as it allegedly prepares to sell the telecom to yet another firm.

The Herald Newspaper claims the huge number of layoff, became necessary because they want the company’s balance sheets to look good to the potential buyers. The number of people going home it is said, constitute 40 percent of Vodafone’s total number of employees in the country.

EIB network

YEN.com.gh has learned through close sources at EIB network that the salaries of workers and lead presenters have been slashed by half as the media company struggles to stay afloat its financial woes. Resignations have already started with the latest being the presenter for the morning show, Baisiwa Dowuona-Hammond.

TV Africa

All programs on TV Africa have been suspended effective Monday, September 3rd. This report, coming from Star FM, claims that the rebranded television station is struggling with its finances and also not able to pay salaries of workers. The owner of the business has told senior management members that he is unable to pay workers going forward.

This development has happened just two years ago after a private financial holding company, the Ideal Groupe, acquired a majority share in the TV station after 13 years of operation under the management of Kwaw Ansah.

GN Media

YEN.com.gh has also learned that Dr. Papa Kwesi Nduom’s GN media a subsidiary of his Groupe Nduom, has laid off about 30 workers. A letter signed by the head of recruitment and selection at the GN media subsidiary thanked workers for their contribution to the company and also further offered them their one month salary in advance.

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Also, some persons who have been on their mandatory annual leave have been recalled and also issued with dismissals that have rocked the media company of the founding father of Progressive People’s Party (PPP).

So far, government has revealed plans to ensuring that more jobs are created from the private sector.

This has been seen with the coming in of the planting for food and jobs program which is expected to create over 750,000 jobs and also the provision of tax incentives for private sector businesses resolved in employing more persons.

Also, it seems that any resolve to find shelter in the public sector is impossible. This is because government has also raised redflags over the way in which the public sector is 'chocked'.

Senior minister, Yaw Osafo Marfo, had argued that things could go terribly wrong if the private sector collapses.

"The public service is very choked, we cannot employ anymore people. If we fail to invest in the private sector, we may be convulsed to lay off workers," he revealed.

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Source: Yen.com.gh

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