Sugar producer Triangle Limited has announced plans to reduce its workforce in a three-phase retrenchment process due to ongoing economic challenges. The company cited escalating operational costs, currency losses, and competition from low-cost, duty-free imported sugar as key factors affecting its financial position. Additionally, the inability to claim VAT on inputs following sugar’s exemption from VAT has worsened its situation.
The company’s notice did not specify how many employees will be affected by the retrenchment process. However, the phased exercise will take place over several months, with Phase 1 to be completed by the end of February 2025, Phase 2 by the end of May 2025, and Phase 3 by the end of August 2025.
Triangle Limited highlighted that despite exceeding agricultural and milling performance targets by 14%, its profit margins have declined by 55% since 2022, and manpower costs have increased by 133%. The company has also struggled with rising debt levels, reduced cash flows, and unsustainable production costs compared to regional benchmarks.
The retrenchment process will be conducted under Zimbabwe’s Labour Act, with the company pledging to provide fair severance packages based on years of service and access to support programs for affected employees. Triangle Limited has emphasized its commitment to transparency and fairness throughout the process.
The company, a key player in Zimbabwe’s sugar industry and the Lowveld economy, stated that the retrenchments are part of broader restructuring efforts under Project Zambuko to stabilize operations and safeguard its long-term sustainability.
Managing Director Tendai R. Masawi expressed gratitude for employees’ dedication and loyalty, noting that the decision is based solely on economic pressures and not employee performance. Employees with questions or concerns are encouraged to contact the Human Capital team.
