Unga Group has restructured its operations in a cost-cutting move that will see chief executive Joseph Choge take additional roles of running two subsidiaries whose former leaders recently left the group.
The move comes after the human and animal feed processor cut 117 jobs in the year that ended June amid losses from ongoing operations.
“I wish to notify you that our senior colleagues, Mr Andanje Mwairumba, general manager of Unga Limited and Dickson Jawichre, general manager Unga Farm Care (EA) Limited, will be leaving the company effective today,” Mr Choge wrote in a memo dated November 21.
“The organization will now revolve to a leaner structure with the group managing director as the lead for both subsidiaries.”
Previously, the subsidiaries had their own heads who reported to the CEO of the listed entity –Unga Group— through a series of chains of command.
With the change, Mr Choge now runs the operating subsidiaries besides the ultimate parent firm.
Unga Limited deals in milling wheat and maize while Unga Farm Care (EA) processes animal nutrition products.
Both subsidiaries are fully owned by Unga Holdings which is in turn owned 65 per cent by Unga Investments Limited –a vehicle 100 per cent owned by Unga Group.
This gives the listed firm an effective stake of 65 per cent in the operating entities.
The company has been undergoing restructuring which saw it shed 117 jobs in the year that ended June amid sluggish sales and an increasingly competitive environment.
The company’s workforce dropped to 283 in the review period compared to 400 the year before, disclosures from the latest annual report show.
