Dis‑Chem has initiated a retrenchment consultation process as it restructures its head office operations in response to increased competition and to reposition the business for future growth.
The pharmacy group said just over 500 employees in certain head office departments have been invited to consult in a section 189 process. The affected staff represent no more than 2.4% of Dis‑Chem’s total workforce. Retail stores and distribution centres are not affected by the process.
CEO Rui Morais said the restructuring is aimed at creating a new head office operating model, which will ultimately see the creation of about 200 additional roles in key departments where the group has historically underinvested.
“The process we’re undertaking is designed to enable a new head office operating model,” Morais said.
“A key outcome will be a new structure with clear lines of accountability, which also enables better integration with X, bigly labs, the group’s innovation unit focused on strategic initiatives such as Better Rewards.”
The process we’re undertaking is designed to ensure that Dis‑Chem is optimally structured for future growth and success aligned to its strategic priorities
— Rui Morais, Dis‑Chem CEO
Morais acknowledged the sensitivity of the retrenchment process, noting the rigid legal requirements around section 189 notices.
“The unfortunate thing about a section 189(3) notice is that it requires very blunt and rigid language,” he said. “Dis‑Chem remains committed to meaningful consultation with those impacted by the process and to exploring alternatives to retrenchment.”
He added that the restructuring is necessary to ensure the company is properly aligned with its long‑term strategy.
“The process we’re undertaking is designed to ensure that Dis‑Chem is optimally structured for future growth and success aligned to its strategic priorities,” he said.
Dis‑Chem is in the midst of transitioning from a traditional pharmacy retailer into an integrated health-care provider. The group is expanding its services beyond retail pharmacy to include virtual doctor consultations, life cover, medical insurance and in-clinic health-care services.
These include family planning and baby vaccination services provided at Dis‑Chem clinics on behalf of the state, free of charge to patients.
The company said it is critical that its operating model, organisational structure and ways of working evolve in line with these broader health-care ambitions.
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