Barloworld Logistics Africa (Pty) Ltd Chief Executive Officer Lubabalo Mtya has written to employees in Barloworld firms that fall under logistics informing them of the organisation’s plans to restructure the businesses for operational purposes.

Mtya cites the dire financial financial state the companies find themselves in and the losses which are expected to continue upwards as the reason for the restructuring.

He also noted that the process may be unsettling for employees who have no idea where the restructuring will leave them.

Addressing employees, he wrote;

RE: CONTEMPLATION OF BUSINESS RESTRUCTURE for operational reasons

Barloworld Logistics Africa Proprietary Limited “Logistics” is in a dire financial state and is performing significantly below expectations.The forecast for the business indicates that the losses currently experienced will most likely continue and increase, in the event drastic action is not taken almost immediately.

The following operations within the logistics business , Manline Energy, Manline Freight, Manline Mega and Global Solutions are significantly underperforming which is negatively impacting the overall consolidated financial perfomance of logistics. It is anticipated that these businesses will not meet their FY2021 financial targets in the current economic landscape.

We have considered various options and alternatives to mitigate the current financial position of the business, and have reached the considered decision that we now need to formally inform you of the need to contemplate of the restructure of these businesses for operational reasons.

The envisaged restructure will have an impact on this company. We are now commencing the process of communicating and engaging on the goals and objectives of this restructure, as well as, the implications on the company and the employees.

We appreciate that the company is going through a period of necessary change and understand that the process of the organisational restructure may also be unsettling. Recognising this potential impact on our employees, we will endeavour to conduct this process in a meaningful and efficient manner.

The company will conduct this process in a phased approach and will accordingly be in contact with you to schedule consultations.

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