Diversified South African-based resources group Exxaro Resources Limited (JSE:EXX) (Exxaro) reports that it intends to restructure parts of the group to improve productivity, reduce cost of services and operations, and streamline its organisational structures.
The group has informed its respective labour unions that it is contemplating retrenchments as the proposed restructure could lead to about 300 retrenchments.
A process of consultation will start this month with union representatives and employees.
“We are doing everything possible to limit the impact on our employees and the consultation process will examine all options. However, the future sustainability of the group remains a pressing need in the context of the demanding business environment in which we operate and we must ensure we have a streamlined and competitive current business to meet our growth aspirations,” said Sipho Nkosi, Exxaro’s chief executive officer.
Exxaro currently employs about 10 500 people.