East African Breweries Plc (EABL) has reported a reduction in its headcount by 168 in the fiscal year ending June, bringing the total number of employees to 1,408. This marks the first time in over seven years that the company’s staff size has fallen below 1,500. The decline in the number of employees coincided with a 21 percent decrease in EABL’s net profit, largely attributed to increased costs, including indirect taxes, cost of sales, and net finance costs.
Key Points:
- East African Breweries Plc (EABL) has recorded a decrease in its headcount by 168, bringing the total number of employees to 1,408.
- Production employees saw a reduction of 122, while management and administration roles decreased by 70. However, roles in sales and distribution increased by 24.
- This is the first time in over seven years that EABL’s staff size has fallen below 1,500. The company had 1,609 employees in 2017, but the number gradually decreased to 1,500 by the end of 2021.
- In 2022, EABL added 76 jobs as earnings more than doubled, rebounding from Covid-19 disruptions.
- Employee costs for EABL in the reviewed period were Sh13.5 billion, compared to Sh13.2 billion the previous year and Sh9.35 billion seven years earlier, indicating an increase in remuneration.
Analysis: The reduction in East African Breweries’ (EABL) headcount reflects a strategic move by the company, possibly driven by a combination of factors including cost optimization, operational efficiency, and changing business dynamics. The increase in employee costs over the years suggests a focus on remuneration and employee well-being, even as the total headcount fluctuates. EABL’s ability to adapt its workforce in response to business conditions showcases its agility in managing resources. It will be interesting to monitor how this adjustment impacts the company’s operational performance and overall productivity in the coming periods.
