Moneyweb reports that about 150 employees at property and private memorial parks developer Calgro M3 Holdings have been retrenched, following a decision by the group to close its construction division.  

The retrenched employees could apparently not be absorbed by Calgro M3’s new outsourced contractors.  Calgro M3 has also decided to sell its entire residential rental portfolio and use the proceeds to settle debt.  CEO Wikus Lategan indicated that closing the construction division, rightsizing the business and closing offices had probably cost the company between R20 million and R30 million.  He added that the decision was largely driven by fixed cost reduction to enable the group to support itself much better in challenging times and it had “almost set ourselves up for Covid-19 in this respect”.  Referring to the decision to close the construction division, Lategan noted that there were contractors “that build way more efficiently than us and specialise in that.”

• Read the full original of the report in the above regard by Roy Cokayne at Moneyweb

Get other news reports at the SA Labour News home page