Java Asks Employees To Resign As Going Gets Tough

Java House

Java House Kenya is set to retrench hundreds of employees, even as it says it has run out of ideas to keep afloat.

On Thursday, the company handed its employees Voluntary Separation Option forms that would enable them voluntarily resign by November 27.

This means that the employees have less than two weeks to leave the company which is facing an uncertain future.

“Java has had to make a difficult decision to offer the programme to provide our staff the opportunity to receive a lump sum financial payment from the company, allowing them to create options for themselves following the prolonged effects of Covid-19,” said the coffee chain which runs more than 80 outlets across East Africa.

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“It is also a way in which we can offer an alternative to those unable to work or on rotation to allow them pursue other interests.”

The company says it has run out of ideas to keep going, even after rent relief and cutting utility costs.

“During the last few months, we have looked at every aspect of cost reduction in the business, including re-negotiating rents, our procurement of raw material, our labour schedules and our utility costs and these are now moving towards a very low level in line with expected sales.

“During the last few months, we have looked at every aspect of cost reduction in the business, including re-negotiating rents, our procurement of raw material, our labour schedules and our utility costs and these are now moving towards a very low level in line with expected sales. But unfortunately, the business is potentially over resourced at the current level of performance,” a resignation letter handed to the employees read.

Java closed 14 outlets in March and a month later slashed salaries by 40 per cent citing financial difficulties occasioned by the Covid-19 pandemic.

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