Ola Energy (formerly Oilibya) is set to retrench several workers in a voluntary early retirement in a restructuring move.
Addressing journalists yesterday, Ola Energy general manager Millicent Onyonyi however did not disclose the number of staffers to be offloaded.
“We are not targeting a specific number of staff. It is based on the applications (for voluntary early retirement,” said Ms Onyonyi.
The early retirement plan will offer the employees a severance pay equivalent to one-month for every completed service capped to 20 months, one month salary in lieu of notice, one month salary as a gift, one month salary compensation for resettlement, medical cover to the end of the year and a opportunity for the employee to share pension allowed by the law if they so desire.
Read: Millicent Onyonyi Appointed Ola Energy General Manager
The oil marketer has 189 staff members locally.
The marketer is also said to be targeting dealers who lost sales after rebranding, which happened last year.
Accoording to ms Onyonyi, new laws in the industry have negatively impacted them especially the 10 percent import duty charged against raw materials used in the manufacture of lubricants.
Read: Energy Regulatory Commission (ERC) Changes Name To Energy and Petroleum Regulatory Authority (EPRA)
It is reported that the move to retrench was occasioned by higher unit costs experienced than the gross selling margins.
Ola joins a number of companies that are retrenching in the country, citing a difficult operating environment.
Latest to retrench was the Athi River Mining company, that offloaded senior staffers.
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