Struggling CMC Motors Lays Off 110 Employees Citing Loss of Franchise Deals
Automotive distributor CMC Motors has sacked 110 employees in a move to realign its business. According to the company, the loss of franchise deals has impacted its sales thereby forcing it to cut down on staff costs. Last year, CMC let go about 160 workers.
CMC director Joel Kibe said: “We lost Jaguar Land Rover, VW, and Ford. We are not getting revenue so [we] cannot continue keeping people.”
The company now wants to place its efforts in acquiring new brands and reorganising its business by bringing “in young people who can add value” as the market changes.
CMC has faced tough times after Dubai’s Al Futtaim Automotive Group took over ownership in 2014 and delisted from the Nairobi Securities Exchange. This move saw major brand Ford leave the company. Prior to this, CMC had lost Jaguar Land Rover to RMA Kenya.
The automotive distributor also lost Volkswagen to DT Dobie due board disagreements which resulted in delisting from the NSE.
CMC’s sales dropped from 19,524 in 2015 to 10,722 in 2017.