Diageo Africa Business Service Centre (ABSC) which is the major shareholder in East African Breweries Limited (EABL) in a move expected to lead to the laying off of more than 100 employees, is set to shut down its Nairobi based business support center and outsource the services.
The British multinational’s restructuring plan, it has outsourced all its accounting, analytical and financial work to Bangalore, Budapest, Hungary and India.
Diageo in a statement made it known that, “the business services requirements and processes across Diageo Africa are changing and as such Diageo will be conducting a review of the centre to determine where best to locate technical services roles for Africa in either Europe or Asia.”
The Africa Business Service Centre (ABSC) unit runs the back office processes required for Diageo’s finances, human resources, sales, supplies and marketing functions.
The termination of employment will be done gradually and end in March 2020 with most of the company’s lay offs being concentrated in the human resources and finance departments.
Diageo, the parent company of East African Breweries Limited (EABL), stated that the changes would not affect core functions of its local subsidiary.
East African Breweries Limited (EABL) joins the long list of Kenyan companies who have laid off their employees in the recent months as a result of restructuring primarily driven by limited access to loans and the tough economic environment.
Over the last year alone, more than 2000 jobs have been lost in firms such as Equity Group, Bamburi Cement, Britam, Equity Group and Standard Chartered.
