Ashton Mombasa Apparel EPZ Limited (AMA) has explained why it was forced to lay off a section of its workforce.
In a statement regarding the retrenchment, the company said the decision was made in response to a significant reduction in contract orders from its customers.
"The affected employees were primarily on seasonal contracts that expired on March 25th, 2024," the company said in a statement.
"While the majority of our workforce, almost 10,700, has had their contracts extended despite major reductions in our customers' orders, regrettably, we could not extend contracts for some of our employees due to prevailing business conditions."
AMA said it is committed to fulfilling all contractual obligations to the affected employees, in line with the Kenyan Employment Act.
"All dues will be settled in accordance with the terms outlined in their contracts," it said.
"It is important to note that this decision is solely driven by the current business needs, which necessitate a reduction of about 1,900 employees to align with the reduced demand from our customers."
The company added:
"We deeply value the contributions of all our employees, and this decision was not made lightly."
"While we understand the impact this may have on the affected individuals, we remain hopeful that business conditions will improve in the future. "
Should there be a resurgence in demand and an improvement in operational requirements, the company said it will prioritize rehiring the retrenched staff accordingly.
"AMA extends its gratitude to all employees for their dedication and hard work during their tenure with us."
