JSE-listed Ellies has issued a Section 189 that could result in more than 100 jobs at subsidiary Ellies Electronics being cut.
The group is entering into a formal consultation process with relevant stakeholders as it restructures its goods receiving, warehousing, distribution, logistics and head office functions.
This could impact about 183 jobs.
“This is pursuant to ongoing financial losses experienced by Ellies Electronics,” the company said in a statement on Monday.
The restructuring will result in the rationalisation of overheads and the realisation of other efficiencies required to restore profitability and ensure the existence and longevity of the company going forward.
Other measures are being considered to avoid and mitigate possible retrenchments and seek alternatives to the potential cessation or downscaling of the affected operations.
“The company is committed to following the legislative processes to ensure all affected employees are treated fairly,” Ellies assured.