JD Group, the South African furniture retail unit of Steinhoff International plans to cut as much as 4,000 jobs in closure of about 260 stores, as part of a rebuilding process.
According to a statement by the South African Commercial, Catering and Allied Workers Union, the company last week served notice which proposed the restructuring expected to affect 4,110 workers. The company, however, puts the figure at 1,800 workers.
JD’s restructuring plans were accelerated following Steinhoff’s takeover and delisting of the stock, last year. The international retailer had in 2014 increased its stake in JD Group to shore up the finances of the loss making company which has been hard hit by a downturn in consumer spending in South Africa.
News about JD’s planned sack of worker comes at a time Steinhoff International made a $2 billion offer for British company Home Retail Group. Its biggest profit comes from furniture stores and wholesale operations in Europe.