Castel Malawi will roll out its first phase of the retrenchment process that was announced in June, citing an ever increasing cost of production which resulted into high and unsustainable operating costs. The beverage giant therefore resolved to lay off 300 employees, as revealed by a memo by the firm’s Director of Human Resources, which stated that there will be a a four-phased retrenchment plan will be implemented for one year, to last till June 2020.

“Management would like to inform all members of staff that the first phase of the retrenchment will be carried out in the month of August 2019” says a circular to all heads of departments at Castel Malawi.

 According to a memo that announced the retrenchment, the criterion for the retrenchment will be as follows; staff whose performance is/has been poor, staff with disciplinary issues, staff close to retirement, staff who were identified as surplus in their respective departments and staff whose positions will be declared redundant. The memo also outlines that the retrenchment plan is adherent to labor laws such as severance allowance and one month pay in lieu of notice, among many more.