Tongaat Hulett Zimbabwe is considering to reduce its workforce by 1,000 employees by August 2025 as the sugar producer grapples with rising costs, inflation, and a volatile local currency, according to the company spokesperson, reported Reuters.
With a workforce of 16,000, Tongaat Hulett is one of Zimbabwe’s largest employers. The company has raised concerns over rising labor and fertilizer costs, as well as losses from the country’s unstable currency.
The company operates two sugar mills in Zimbabwe, located in Hippo Valley and Triangle, with a combined annual crushing capacity of 3.5 million tons of sugarcane. However, the ongoing economic crisis in the southern African country, which has seen rampant inflation and a weakened currency, has impacted local businesses, including Tongaat Hulett.
Dahlia Garwe, a spokesperson for Tongaat Hulett Zimbabwe, told Reuters that the layoffs would be implemented in three phases between February and August 2025. The cuts will affect 500 workers at each of the two mills.
“The challenge of managing such a large workforce requires us to explore ways to improve efficiency in our operations,” Garwe explained. “This decision is part of a broader strategy to control costs and stabilize the company.”
Since 2022, the company has faced a 55% decline in profit margins, while labor costs have surged by 113%, exacerbating its financial pressure and contributing to significant debt accumulation.