Post Office to Retrench 6,000 Employees in Business Rescue Plan

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Post Office,Business Rescue,Retrenchment

The Post Office, placed into business rescue, will retrench 6,000 employees as part of its plan to restore solvency and operate sustainably without government funding. The plan also aims to provide a better outcome for creditors and restructure the Post Office into an efficient business.

The ailing Post Office was placed into business rescue on 10 July 2023 and the business rescue practitioners now published their plan.The joint business rescue plan indicates that 6 000 of the Post Office’s 11 083 employees will have to be retrenched as one of the measures to restore it to solvency and operate sustainably as a going concern without total reliance on government funding. Sassa payments will also be phased out.

The plan, drawn up by Anoosh Rooplal and Juanito Damons, also aims to provide a better outcome for creditors that would have been the case if the Post Office was liquidated.“Our approach in the plan is to rationalise costs which are currently unsustainable and assist in restructuring the Post Office into an efficient and future-proofed business,” Rooplal says in a statement, pointing out that the entity’s financial sustainability is a critical concern that demanded attentio

 

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