Nearly 200 jobs affected as Ellies Electronics announces restructuring

Local manufacturer Ellies Electronics will embark on a restructuring process, affecting 183 jobs, the group said in a notice on the stock exchange news service.

Ellies Group, established in 1979, is a manufacturer, importer and wholesaler of electronic goods including lighting as well as renewable energy products such as solar panels.

The group on Monday said that it's subsidiary Ellies Electronics has entered into a Section 189 process – which according to the Labour Relations Act allows employers to dismiss employees for operational purposes.

Ellies Electronic will be restructuring its "goods receiving, warehousing, distribution, logistics and head office functions".

"This is pursuant to ongoing financial losses experienced by Ellies Electronics. 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," the notice read.

The group said it would work with affected employees to consider measures that "avoid and mitigate" possible retrenchments.

Compiled by Lameez Omarjee