30 October 2023
4Racing has embarked on a cost-reduction program aimed at reviewing its workforce and as part of the process is offering employees voluntary severance and early retirement packages.
The company took over the management of the Phumelela business and horse racing assets on 1 December 2021 under business rescue, as a business with a large cost base and declining revenue profile.
Since then, 4Racing has spent considerable time and effort stabilising and assessing the business to optimise products, revenues, and expenses.
In addition, the global and local economic challenges experienced by punters and customers have also added to a challenging business environment.
Earlier this year 4Racing also implemented a new corporate restructure process to streamline the business and highlight areas where there are opportunities for further efficiencies. Being successful in this process is geared to contributing to the business continuing its path to profitability and sustainability.
The next step is to adjust the business expenses to fit the company’s current and future needs, and to enable its success in the longer term. Amongst other initiatives, 4Racing is now starting a cost-reduction program aimed at rightsizing its workforce and is offering employees the opportunity to apply for voluntary severance packages and voluntary retirement for employees who are 55 years of age and above.
Employees have until 10 November 2023 to apply for these packages and 4Racing will assess the applications and consider them on the basis of the operational needs of the business.
ENDS