CMC Motors Fires 169 Employees
CMC Motors Group has declared 169 positions of its workers countrywide redundant after three vehicle brands namely Mazda, Ford and Suzuki terminated their distribution deals with the company.
The redundancy means the employees have been fired.
Sakib Eltaff, The Group Managing Director on Tuesday said the move has affect employees in all cadres of management and will be done gradually between the first and fourth quarters of the year.
He said that the termination of the said three contracts will significantly result in a huge decline in business, which will directly affect employees’ structures and roles in the company, which has resulted in the painful decision of retrenchment.
“Three leading brands i.e. Ford, Suzuki and Mazda have terminated and or given notice of termination of their distributorship contracts with CMC Group starting today until Q3 2023. CMC will therefore cease distribution of three passenger vehicle brands it has offered in the market in the next few month.This means that it will become necessary to declare 169 employees redundant. The employees affected are in both management and unionisable categories. The company intends to undertake the redundancy in 3 phases as the distributors wind up their operations with CMC Group between the 2nd quarter of 2023 and the 4th quarter of the year. Please note that employees who work in Admin & Support, Finance, IT, Legal, Logistics, Senior Management, Parts, Procurement, Projects, Sales, and Service departments will be affected by the redundancy.” ,” The MD said in the statement.
CMC has been among the leading distributor of passenger vehicles and tractors in the East African region and has branches in Mombasa, Nakuru, Kisumu, Nanyuki, Meru, Eldoret and Kitale.
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