TRIANGLE, CHIREDZI- Tongaat Hulett Zimbabwe, one of the country’s largest sugar producers, has announced plans to lay off 1,000 workers by August 2025. This decision is part of a broader strategy to manage rising operational costs, driven by the nation’s inflation and currency instability.

The company, which employs approximately 16,000 people across its two sugar mills, operates with a combined capacity to crush 3.5 million tons of sugarcane annually at its facilities in Hippo Valley and Triangle. However, despite its significant presence in the industry, Tongaat Hulett Zimbabwe has faced mounting challenges, including surging labour and fertiliser costs, as well as substantial losses due to the volatility of the local currency.

Dahlia Garwe, a spokesperson for the company, confirmed that the layoffs would occur in three phases, with 500 workers from each of the mills affected between February and August 2025. “It is very difficult to manage such a large workforce, so we need to look at ways to improve efficiency in our operations,” Garwe explained.

The company’s financial difficulties are reflected in its recent performance, with profit margins declining by 55% since 2022. Additionally, labour costs have increased by 113%, placing further strain on the company’s finances. The workforce reductions are part of a broader effort to regain control over costs and stabilise operations.

Tongaat Hulett Zimbabwe also clarified that the decision to reduce its workforce is not connected to the ongoing business rescue process at its South African parent company. Following an accounting fraud scandal, the South African division entered business rescue proceedings in October 2022. As part of this process, the company is selling its Zimbabwean assets, which include Triangle Sugar Estates and a 50.3% stake in Hippo Valley Estates, to a Mauritius-based investment firm.

The company has stressed that despite these challenges, it remains committed to the long-term sustainability of its operations in Zimbabwe.