Dis-Chem Plans Retrenchment Of Over 500 Workers

Retail pharmacy group Dis-Chem has confirmed that more than 500 employees have been invited to participate in retrenchment consultations as part of a restructuring process.

The company said the move follows a review of its operating model and organisational structure to align with its long-term business objectives.

Dis-Chem Plans to Add Jobs Despite Restructuring

Chief executive officer Rui Morais said the process does not necessarily mean large-scale job losses.

“The process we’re undertaking is designed to enable a new head office operating model, which will see an additional 200 jobs added to key head office departments in areas of the business where we have historically underinvested,” he said.

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Morais added that the restructuring aims to create clearer accountability and improve integration within the business.

He said the affected employees represent about 2.4% of the total workforce and confirmed that staff at retail stores and distribution centres are not impacted.

Consultations Ongoing as Process Continues

Morais, who succeeded Ivan Saltzman as CEO in 2023, said the process is still in its early stages and may take several months to conclude.

“Dis-Chem is at the early stages of this regulated process which can take months to conclude,” he said.

“The unfortunate thing about the notice issued to affected employees is that it requires very blunt and rigid language. The process we’re undertaking is designed to ensure that Dis-Chem is optimally structured for future growth and success, aligned to its strategic priorities.”

Consultations with affected employees are ongoing.