Job losses continue unabated

Unemployment_9The massive job layoffs that hit many workers in 2014 and 2015 are continuing unabated this year, Business Finder has gathered.

This paper’s checks indicate that many private organizations are restructuring their businesses as a result of economic hardships facing the country.

Investigations have revealed that the restructuring exercises are leading to major job cuts.

The increases and introduction of new taxes, the increases in utility tariffs as well as the power crisis or dumsor which has though reduced considerably has compelled most firms to re-strategize in order to cut costs and remain in business.

From manufacturing to telecom to financial services and mining sector among others, several hundreds of workers are being asked to go home.

A visit by this paper to some manufacturing firms in Tema and Accra industrial area revealed that a number of manufacturing firms had resorted to making some permanent workers casual in order to keep their expenses low and continue in business.

A manager with a roofing sheet producing firm in Tema told this reporter that it was better for them to engage workers only when there are jobs to be executed.

“Because of the dumsor, we couldn’t keep our permanent workers……we only re-engage them when we have jobs to be done.

The manufacturing sector which has been growing far below target has recorded more than 30,000 layoffs since 2014.

Many more are expected to go home after firms such as Unilever announced cost-cutting measures in order to remain profitable this year.

The telecom sector also appears to be feeling the pinch of the struggling economy following indications that three of the five firms are undertaking retrenchment exercises to keep their businesses running.

The mining sector may continue some cost-cutting measures that it began some three years ago since gold prices will not rebound anytime soon.

It is even unclear whether AngloGold Ashanti will resume operations at its Obuasi mines this year after Rangold was reported to have announced its withdrawal from a partnership signed last year to restore the Obuasi mines.

In the financial services sector, some multinational banks especially Standard Chartered Bank have been laying off workers mainly contract staff.

Fear is said to have gripped some staff of GCB Bank who are unsure whether the bank will undertake retrenchment exercise this year.

Taxes such as the Stabilization Levy among others have eaten into the operating profits of most banks leading to a reduction in return on equity and after-tax profit.

The hotel and transport sectors have also been suffering from high operating costs from increases in tariffs and fuel.

President of the Ghana Hotels Associations, Herbert Acquaye recently said industry players may be forced to cut down workforce due to a high cost of doing business.

The International Monetary Fund (IMF) had in one breadth tagged the Ghanaian economy as an improving economy and at the same time warned of a gloomy outlook for Ghana.

 

Source: The Finder.

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