Group Five looks to conclude retrenchment process by June
Group Five said on Wednesday it was looking to conclude voluntary and forced retrenchments by the end of June, as part of a restructuring drive that aims to stem losses in its biggest engineering and construction cluster.
The other clusters are investments and concessions, as well as manufacturing.
The details of the job cuts, which are led by acting CEO Themba Mosai following the stepping down Eric Vemer in the first quarter, were likely to be disclosed when the company released its full-year results.
"These changes are aimed at unlocking shareholder value and addressing mainly the loss-making engineering and construction cluster. The board and executive management are aligned on this approach," the company said in a statement.
The cluster has now been split into construction SA, construction rest of Africa, and engineer, procure and construct (EPC) sector businesses.
These changes will result in more focused businesses with appropriate resources and cost bases relevant to the regions and service offerings provided, the company said.
The share price was marginally higher to R15.80 on the JSE in late afternoon trade on Wednesday, valuing the company at R1.8bn. The stock has lost a third of its value since the start of the year.