7 Nigerian companies who have downsized - Over 1,000 workers sacked

According to the report put together by The Punch, seven firms witnessed a reduced workforce between 2022 and 2023 as seen in the firms’ annual reports on changes in workforce statistics.

The Manufacturers Association of Nigeria (MAN) also revealed that in the first six months of 2023, 3,567 jobs were lost in the sector due to various factors such as policy failures and unsold goods.

Other challenges faced by the sector include the scarcity of dollars as companies faced difficulties in accessing foreign currency to purchase raw materials and equipment.

The affected companies include;

The report noted that Dangote Sugar Refinery came tops in the list as over 675 staff left the company during the period.

In 2022, Dangote Sugar’s employee data showed it had 8,993 employees on record made up of 6,015 contract employees and 2,978 permanent employees. The number dropped to 8,318 in 2023 comprising 5,408 contractors and 2,910 permanent staff, showing that 675 employees left the company during the period.

During the period in review, about 380 employees of Nigerian Breweries were downsized. This indicated a 14% cut from 2,685 employees in 2022 to 2,305 in 2023.

The firm attributed the downsizing to various economic factors which include forex crisis, decreased consumer demand, and increased fuel prices which left a devastating mark on its 2023 financial performance.

In 2023, 176 employees of Unilever Nigeria Plc lost their jobs. Recall the company had announced a strategic business move last year when it said it would exit the home care and skin cleansing markets to reposition its business for sustained profitability. The department ceased operations in December 2023.

Cadbury Nigeria lost 21 employees during the period in review. In 2022, the company reported 480 employees. The figure was reduced to 459 in 2023.

Last year, Cadbury faced a major forex crisis that severely affected its financials as shareholders failed to get dividend payment for the 2023 financial year.

Conoil employees dropped to 149 from 168 reported in 2022 showing the company lost just 19 employees during the period.

Unlike other companies that were affected with the economic crises, Conoil Plc’s revenue in 2023, grew by 53.2% from ₦131.422bn recorded in the corresponding period of 2022, to ₦201.387bn in 2023.

Africa Prudential reduced its staff strength by 9. As of 2022, the firm had 89 employees. This reduced to 80 in 2023.

The firm witnessed a 32.5% drop in its profit after tax from ₦1.4 billion recorded in 2022, to ₦962m in 2023 although that has not been given as the reason for the job cuts in the firm.

The International Breweries employee data showed just a slight difference as it reduced from 1553 in 2022, to 1552 in 2023.

The major downsizing was reported among the company's management staff during the period. In a bid to cut costs, about 332 management staff were relieved of their appointments during the period.