CMC to Lay Off 169 Employees After Losing Key Dealerships

After losing important auto dealership deals, CMC Motors Group has begun laying off staff; this move will affect 169 of its employees.

The company, a fully owned subsidiary of the global Al-Futtaim Group with headquarters in Dubai, has lost the dealerships for the key Ford franchise in Kenya to Salvador Caetano, which will begin retailing the American brand in July.

The company has also lost Suzuki to CFAO Motors (formerly Toyota Kenya), which will handle the brand from next month.

The move has negatively impacted the company, which has been an authorized distributor of new cars, tractors, and major automakers in Kenya for decades.

“As a result of the termination of these distributorship contracts coupled with the changes in the market demand, CMC Group is re-organising its business. This will result in a reduction in the number of roles and resources required to execute the remaining functions,” Group managing director Sakib Eltaff said in a notice.

Employees in senior management, administration, finance, IT, legal, logistics, and procurement are among those who will be impacted.

As the distributors’ operations with CMC Group come to a close between this month and December, the company plans to implement the redundancy in three stages.

Phase one of the redundancy commenced yesterday, (April 25).

Throughout the process, management has pledged to abide by the Employment Act, individual contracts, and the Collective Bargaining Agreement between the business and the union.

The company now says it will invest and refocus growth efforts towards agriculture mechanization as well as the two-wheeler sectors.