Dis-Chem Announces Layoffs Affecting More Than 500 Employees

Dis-Chem, a retail pharmacy group, has announced that over 500 employees have been invited to engage in retrenchment consultations as part of a restructuring initiative.

The company explained that this decision follows a comprehensive review of its operational model and organizational framework to better align with its long-term business goals.

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Dis-Chem to Create New Positions Amid Restructuring

CEO Rui Morais stated that this process does not automatically imply significant job losses.

“Our current undertaking aims to establish a new head office operating model, which will lead to the creation of an extra 200 jobs in key departments where we have previously underinvested,” he noted.

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Morais added that the restructuring is intended to promote clearer accountability and enhance integration throughout the organization.

He mentioned that the employees affected account for approximately 2.4% of the total workforce, assuring that staff in retail locations and distribution centers will not be affected.

Ongoing Consultations as Process Progresses

Morais, who took over as CEO from Ivan Saltzman in 2023, indicated that the process is still in its initial stages and may require several months to finalize.

“Dis-Chem is currently in the early phases of this regulated procedure, which can be lengthy,” he remarked.

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“Regrettably, the notice provided to the impacted employees must use very direct and inflexible language. Our goal is to ensure that Dis-Chem is optimally positioned for future growth and success, in accordance with its strategic priorities.”

Consultations with the affected employees are continuing.

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