Old Mutual cuts jobs

Old Mutual cuts jobs

THIRTEEN positions at Old Mutual Namibia are to be terminated within the next two months, employees heard on Wednesday.

According to a memo forwarded to staff by Group CEO Johannes !Gawaxab yesterday, the move is part of the reorganisation of the company as approved by its board last weekend. The move, the letter stated, is intended to boost operational efficiency, improve service delivery to clients and deal with administrative expenses.”The reorganisation and streamlining of the business will result in six managerial and seven administration/clerical positions becoming redundant and affected employees may be retrenched,” the letter read.However, the company said that it was looking at alternatives, and when contacted by The Namibian for comment, !Gawaxab said seven of the affected employees had already been moved to new positions.”We’ve been growing the business on the wrong side,” he explained.”We’ve been growing in the administration department but we need to shift this growth to sales.”Twenty-one new positions had been created in the sales department, he said.The affected employees were reportedly shocked on Wednesday afternoon when they, without prior notice, received letters from the company informing them of the termination of their positions .”We only received letters at around 16h00″, one said, confirming that alternatives to retrenchment were mentioned.”We have to apply for sales positions, but when I first applied to the company I didn’t apply for sales.I’m not a salesperson,” she said, implying that she might be leaving the company after the two-month deadline.!Gawaxab acknowledged that moving the affected administrative and managerial employees to sales positions could be regarded as a demotion.However, he denied reports that the company was planning on shifting some of its functions to South Africa.”Its understandable.That’s the negative energy we were expecting to be present after the announcement,” he said.”But in fact we’ll actually be taking on some functions that used to be done in South Africa.”He said that as part of the move, clients can expect a number of new products from March next year.The Namibia Financial Institutions Union (Nafinu) Secretary General Asnath Zamuee said yesterday that the union had received a letter from Old Mutual, but did not want to elaborate before studying the details of the situation.The move, the letter stated, is intended to boost operational efficiency, improve service delivery to clients and deal with administrative expenses.”The reorganisation and streamlining of the business will result in six managerial and seven administration/clerical positions becoming redundant and affected employees may be retrenched,” the letter read.However, the company said that it was looking at alternatives, and when contacted by The Namibian for comment, !Gawaxab said seven of the affected employees had already been moved to new positions.”We’ve been growing the business on the wrong side,” he explained.”We’ve been growing in the administration department but we need to shift this growth to sales.”Twenty-one new positions had been created in the sales department, he said.The affected employees were reportedly shocked on Wednesday afternoon when they, without prior notice, received letters from the company informing them of the termination of their positions .”We only received letters at around 16h00″, one said, confirming that alternatives to retrenchment were mentioned.”We have to apply for sales positions, but when I first applied to the company I didn’t apply for sales.I’m not a salesperson,” she said, implying that she might be leaving the company after the two-month deadline. !Gawaxab acknowledged that moving the affected administrative and managerial employees to sales positions could be regarded as a demotion.However, he denied reports that the company was planning on shifting some of its functions to South Africa.”Its understandable.That’s the negative energy we were expecting to be present after the announcement,” he said.”But in fact we’ll actually be taking on some functions that used to be done in South Africa.”He said that as part of the move, clients can expect a number of new products from March next year. The Namibia Financial Institutions Union (Nafinu) Secretary General Asnath Zamuee said yesterday that the union had received a letter from Old Mutual, but did not want to elaborate before studying the details of the situation.

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