Bata in Zimbabwe cuts production, staff
A 13% drop in sales has been blamed for the decision by Bata Shoe Company in Zimbabwe to reduce production by 20% and cut around 300 from its 5,000 strong workforce.
Managing director Eddie Duthie said that sales have fallen considerably since their peak in 1999 when the company sold 15.5 million pairs. Sales in 2002 are expected to be closer to 10 million pairs. He also added that the loss of the Nike contract severely affected Bata’s production at both the Kwekwe and Gweru factories, forcing the company to cut its workforce.
On the positive side, Mr Duthie said that large orders had been secured for export to South Africa, which should offset the loss of the Nike contract, but 300 contract workers would still be losing their jobs. Mr Duthie said that if the economic climate improves and production can be increased the workers would be offered their jobs back.
