Dis-Chem cutting jobs in South Africa

South African pharmacy giant Dis-Chem confirmed that it has instituted a Section 189 process, with over 500 employees invited to participate.

In a statement released on Friday, 24 April, Dis-Chem explained that this is part of the retailer’s strategy evolution.

To strengthen its operations, the company said it is important that its operating model, organisational structure, and ways of working remain aligned to its future ambitions.

“To support growth and competitiveness in a dynamic market, it is reviewing its organisational framework to optimise the right structures to ensure continued brand progress,” Dis-Chem said. 

Therefore, aligned with this review, the company has instituted a Section 189 process.

“Without context, when people hear Section 189, they immediately default to large-scale retrenchments,” CEO Rui Morais said. 

“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.” 

Dis-Chem said just over 500 employees in certain head office departments, which represent less than 2.4% of the company’s total workforce, have been invited to consult in the Section 189 process. 

“This process does not affect retail stores and distribution centres,” the company said.

Morais said a key outcome of this process will be a new structure with clear lines of accountability, which also enables better integration with X, bigly labs.

X, bigly labs is Dis-Chem’s innovation unit focused on strategic initiatives like Better Rewards.

“The unfortunate thing about a Section 189(3) Notice – the notice issued to affected employees – is that it requires very blunt and rigid language,” Morais said. 

“Dis-Chem remains committed to meaningful consultation with those impacted by the process and exploring alternatives to retrenchment.” 

“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.”

Dis-Chem said it is still in the early stages of the Section 189 process, which could take months to conclude.