Staff Writer 
ONE of the country’s leading sugar producers, Triangle Limited, has announced plans to retrench some of its workforce due to economic challenges.
This comes as most companies are struggling to operate with Beta Holdings and Khaya Cement recently applying to the Master of the High Court to be placed under voluntary corporate rescue.
In a notice yesterday, Triangle said the decision to retrench had been taken to protect the long-term sustainability of the company and ensure it plays its vital role in the country’s economy and save the livelihoods of communities in the Lowveld region.
“After careful deliberation and extensive evaluation of our operational and economic realities, we have made the extremely difficult decision to implement a phased retrenchment process.
“The current economic environment in Zimbabwe has presented unprecedented challenges for Triangle Limited over the past three years. Escalating operational costs, particularly in areas such as fertiliser, fuel, maintenance costs and imported goods and services, combined with inflationary pressures, currency losses.
“The inability to claim VAT on inputs after sugar was exempted from VAT, and competition from low cost duty-free imported sugar, have severely impacted our ability to sustain current levels of operation.
“Since 2022 we have seen profit margins decline significantly by 55 percent, manpower costs increasing by 133 percent as a proportion of revenue, and debt levels rising to unsustainable levels.
“It is important to note that the decision to retrench employees in Triangle is entirely based on local economic and operational challenges. This retrenchment process is not related to the business rescue process of the company’s shareholder in South Africa or the acquisition of the business by the Vision Consortium,” read the statement.
Triangle added that the retrenchment would be implemented in a phased approach starting at the end of February and ending in August this year.
“This process will involve the retrenchment of employees based on operational requirements and in terms of the Labour Act of Zimbabwe, and will be conducted with phase 1 to be done by the end of February 2025, phase 2 done by end of May 2025 and phase 3 to be done by end of August 2025.
“This phased approach allows us to manage the transition with the utmost sensitivity and care. We understand the significant personal and professional impact this decision will have on our employees and their families, and we deeply regret the need to take this step,” the company said.
