Oil marketer, Ola Energy, is laying off an undisclosed number of workers in the country, amid difficult times that have forced it into restructuring its operations.
The company said the restructuring process was aimed at containing its operating costs, resulting in some workers being declared redundant.
A source with knowledge of the oil marketer’s struggles indicated that the company has been struggling financially and has plans to sell some of its outlets in downtown Nairobi.
“Due to the foregoing challenges, Ola Energy Kenya is finding it difficult to sustain its current fixed costs. It is, therefore, with deep regret, that we need to implement a redundancy programme,” Ola said in a statement on Wednesday.
Ola added: "The restructuring is meant to support “sales enhancement and operating cost containment.”
This is the second time Ola Energy has declared redundancy in six years. Ola in 2019 conducted a voluntary early retirement exercise when it had 189 staff on its payroll. The oil marketer presently operates over 1,300 service stations across 17 counties, employing 1,500 people across the markets.
“The company is struggling. There are plans to offload some of its retail outlets, including within lower parts of the CBD,” a source told the Business Daily.
The company hopes that cutting the operating costs will eventually grow its profits and that it can then claim a larger share of the fuel market.
The layoffs, the company said, are part of a rescue action plan it started last year, to turn around misfortunes it has had in the market, mainly in high costs and poor sales.
“Through this restructuring, we are committed to reversing the current trends and positioning Ola Energy Kenya for sustainable growth."
The company said it hoped the restructuring would support an aggressive sales enhancement and operating cost containment programme, designed to reinforce its position as a major retailer of energy solutions in Kenya.
