Pick n Pay to shed some Management jobs

Pick n Pay, SA’s second biggest grocer recently declared that it may shed some of the management positioned jobs and in-turn reduce operating costs after the annual profit had fallen down to 51%. However any further exact details are not yet declared by the HR director Isaac Motaung.

The Cape town based company is passing from the weakest operating margins in its industry, highly affected by the increased cost pressure and slumping profits. Voluntary resignation letters were being offered to the employees without specifying the exact figure of the total amount of job cuts. Before this job cut 650 employees took early voluntary retirement in December 2011.

The management growth is at the peak and its really difficult to compete at these margins. If we look at the company’s sales status than, the net income dropped to 550.6 million rand in the last 12 months. The reason behind this is the company’s lost market shares against its rivals including Shoprite Holdings Ltd.

The company’s market shares were decreased by 1.9% to 36.50R by 12:34 PM in Johannesburg, giving the retailer a market value of around 17.5 billion rand. The company has dropped down by 18% this year compared to 20% move of  FTSE/JSE Africa Food & Drug Retailers Index.