Pick n Pay cuts 3500 jobs… hav

Pick n Pay cuts 3500 jobs… having previously committed to creating 5000

Is this the junk status effect? Time will tell.

Pick n Pay cuts 3500 jobs… hav

Pick n Pay confirmed this week that it had to offer “voluntary retrenchment” to employees, with 3,500 employees leaving the business.

Jobs will be cut in a number of areas at the company, including head office, regional structures, store operations and supply chains.

It’s easy to blame junk status, but tough economic times might not be the sole reason for cutting back.

Why is Pick n Pay cutting back on jobs?

“These roles and functions were no longer required due to improvements in organisation, planning and technology,” Pick n Pay said.

So technology is killing jobs?

As noted by BusinessTech, that’s not quite the full story. In September last year, Pick n Pay became the first retailer to trial “self-service checkouts” as an “additional service”.

At the time, Pick n Pay said: “Staff are required to monitor self-service checkouts and there is no impact on employment. Pick n Pay is increasing, not cutting jobs, and is committed to creating 5,000 new jobs each year, ” echoing a previous statement issued in 2015.

Business Tech further notes that Pick n Pay has launched an online distribution center in both the Western Cape and Gauteng – which fills order placed online instead of having these orders packed at a store.

But all of that was before the recession and junk status

Pick n Pay CEO Richard Brasher said the process of cutting jobs started in April already.

“In terms of cutting things back, we did decide in our 50th year that this was an opportunity to put our business properly in shape and make sure we gave it back to the people who we absolutely need to be on our side, which is the customers.”

“In subsequent years, the reduction in employee numbers will have a significant positive impact on the operating costs of the group, creating additional headroom to reduce prices and improve value for customers,” the company said.