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Massmart says 1 800 Game jobs at risk

No stores to be closed as yet.
Image: Waldo Swiegers, Bloomberg

Retailer Massmart Holdings has started talks with unions to cut up to 1 800 jobs at the company’s struggling Game stores as constrained spending and the new coronavirus weigh on performance, the company said on Tuesday.

Majority-owned by Walmart and operator of supermarkets and wholesalers such as Makro and Game, Massmart said talks began after it assessed the efficiency of the stores.

Massmart said it was implementing a new operating model at Game after its “indifferent performance in the 2019 financial year” and the negative impact of trading restrictions because of the pandemic on sales.

The company said it would not close any of its Game stores, however.

Game, a general merchandise chain, has been a drag on group profit as financially-constrained customers prioritise spending on non-durables, such as food, over spending on goods such as appliances.

Massmart earlier in the year said it would cut costs and restructure into wholesale and retail units, but the impact of the virus has accelerated some of the turnaround strategies.

The group lost R4.6 billion in sales during a strict nine-week lockdown.

The potential job cuts would represent around 3% of Massmart’s total workforce.

Job cuts are a politically-sensitive issue in South Africa, where unemployment stands at around 30%.

Game joins some of the country’s big firms such as steel producer ArcelorMittal South Africa Ltd, food producer Tiger Brands and third-biggest telecom operator Cell C, which have already announcing plans to cut jobs.

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COMMENTS   18

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Wait till Bidvest Group et el announce.

Naspers today announced major closures of publications and staff layoffs too.

Last week, the same Naspers’s CEO got a payout of R237 million. Ain’t capitalism just grand, sometimes?

I commented before about Game and Makro ito service. I do business with an independent who is in the same market selling similar goods to Game/Makro (bar food) They showed a 17% increase over last year

Why?

Service, friendly attitude and the extra mile with a smile

I don’t shop at Game, not to mention Makro..These stores are filled with union employees who spend more time on their phones than they care for a customer needing assistanfe

I’ve experienced it in their stores and have zero tolerance for staff who dot not adopt an adept attitude

They think the unions will protect them and their jobs are safe?

1800 job losses later..think again

The independent has no BEE status and is not unionized..

My support goes to them

Long live the independents!

we need a job summit. maybe even two.

Another commission, get a judge or two involved.

Please don’t invite any politicians.

and the unions…. they need to be taught the biggest lesson.

Actually the unions should shutdown too

And then a commission of enquiry so the New fascist government can make a rational informed decision on hiring and firing in the private sector.

Rolling job summits should create a lot of jobs! Our people like to talk endlessly and go nowhere at the same time.

The Yanks are coming

Do Massmart have an online presence to protect the company from this? A dedicated online only store? These 1800 employees can be trained and repurposed to service the growing online community. Getting rid of people with years of work experience is cheap in the short run but expensive in the long run. They need a response to TakeALot! A dedicated web only solution. Plus, most of these employees don’t enjoy helping people face to face maybe a delivery role or warehousing will suit them better.

I am afraid that large job cuts are something that has to happen with the colossal fall in GDP. Naspers is retrenching hundreds from the magazine businesses, Massmart, Edcon etc.

What is really needed and more urgently is to cut government and SOE staff by 30% to 50%…but that cannot and will not happen in Jamnadas s socialist paradise of Azania!

With the job losses comes a decline in PAYE, corporate taxes, and VAT so who knows where the money will come from-Uncle Tito will be hunting for cash all over

Game was on the ropes before Covid-19, with Covid-19 being the trigger to start the count-down timer. No different to Edgars really

whose next? Truworths???

Good whenever i go into Makro the staff ALWAYS ARE HIDING they do not approach to serve F3246 them

Very bad and very sad.I wanna go back to the eighties!!

And this is a surprise how?

It is like watching a car crash in slow motion and you can do nothing about it.

Well done ANC.
High5’s

How did AA work for you guys ?

End of comments.

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