Coffee chain Java House has advised its employees to “voluntarily resign” in a bid to cut costs during this COVID-19 period.
Java told it’s staff on Thursday that they had run out of ideas on how to stay afloat even after rent relief and cutting utility costs.
“During the last few months, we have looked at every aspect of cost reduction in the business, including re-negotiating rents, our procurement of raw material, our labour schedules and our utility costs and these are now moving towards a very low level in line with expected sales.
“But unfortunately, the business is potentially over resourced at the current level of performance,” a resignation letter handed to the employees read.
The forms contained the Voluntary Separation Option programme.
In the letter, Java says eligible employees will get an incentivised option to willingly resign from the company by November 27.
“Java has had to make a difficult decision to offer the programme to provide our staff the opportunity to receive a lump sum financial payment from the company, allowing them to create options for themselves following the prolonged effects of Covid-19,” said the coffee chain which runs more than 80 outlets across East Africa.
“It is also a way in which we can offer an alternative to those unable to work or on rotation to allow them pursue other interests.”
In March, Java closed 14 outlets and a month later slashed salaries by 40 per cent citing financial difficulties occasioned by the pandemic.