Four SA companies that faced job cuts – and closure – in 2018 (FEATURE)

Business

The past year has been an anxious one for workers, as their employers desperately scramble for last-minute deals that could save thousands of jobs.

Here are four SA companies that announced significant losses in 2018. Two are still fighting to stay in business and save jobs, while the others have already surrendered.

Edcon 

The company that owns Edgars, CNA and Jet needs R2bn in emergency funding to continue operations and pay salaries.

Edcon is so intent on coming up with the money to stay afloat that the company is offering a group of store landlords a 5% stake in the business in return for a 41% discount on rent. Many of the company’s stores are in malls, where rent can be crippling.

Edcon wrote a letter to the landlords stating that failure to raise the necessary funds means “it is highly likely that Edcon will enter into a liquidation process”. Such a process would result in around 140,000 jobs lost.

SABC 

Ever since Hlaudi Motsoeneng’s reign at the SABC, the public broadcaster has been plagued with allegations of non-payment to content suppliers.

His departure has not yet improved the situation, however. The broadcaster now needs a R3bn cash injection just to pay staff salaries.

Speaking for the SABC at the National Assembly, board chairperson Bongumusa Makhathini said: “We are in a dire situation and this SABC will collapse. Come March 2019, it will collapse.”

Ndalo Media

The media house that owns Destiny and Elle magazines will be shutting down at the end of January 2019.

Staff salaries were delayed for November and December, leaving employees to contend with a hugely stressful festive season as they try to find other jobs at this time of the year.

The company, owned by media mogul Khanyi Dhlomo, dived deeper into debt in 2016 when it failed to pay the company that prints its publications. To date, Ndalo Media still owes CTP Printers R13m. The printing company has taken the matter to court.

Afro Worldview

On August 20, Afro Worldview said ‘goodnight’ to its viewers for the last time.

The former Gupta-owned company, previously known as ANN7, rebranded itself as Afro Worldview after it was acquired by former government communications head Mzwanele Manyi.

Multichoice ended its contract with the company. Without a broadcast platform, closure was inevitable for Manyi’s business, leaving about 300 people without an income.

Newsroom Africa is set to replace Afro Worldview in 2019 and has said that it will give priority to former Afro Worldview staff during its recruitment drive.

 

-Times Live

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