Massmart has released a statement in which it said 1,800 Game employees are at risk of losing their jobs.
The company said it has recently completed an assessment of how it can improve the efficiency of its Game stores.
As a result of this assessment, it has begun a consultation process that could result in major job cuts.
“Massmart advises shareholders that the group has commenced, with respect to its Game stores in South Africa, a consultation process in terms of section 189 and section 189A of the Labour Relations Act 66 of 1995,” said Massmart.
This section of the Labour Relations Act relates to retrenchments, and is forming the core of discussions with organised labour and other relevant stakeholders.
“This process may potentially affect 1,800 employees in our Game stores in South Africa,” said Massmart.
It said that shareholders would be advised of the outcome of the consultation process.
This news follows the company closing all of its Dion Wired stores with immediate effect in March 2020.
“All Dion Wired stores will cease trading at 18:00 on 19 March 2020. Online shopping on www.dionwired.co.za will close at 8:30 on 19 March 2020. But you can still get all your favourite brands at Game,” said the Game website.
This announcement followed a similar format to the one that has just been published regarding Game.
“The Massmart Group has recently conducted a store optimisation project that highlighted a number of underperforming stores in its portfolio,” Massmart said.
“Consequent to this project, the Massmart Group seeks to advise shareholders that Massmart has commenced a potential store closure consultation process in terms of section 189 and section 189A of the Labour Relations Act.”
The official shuttering of these stores came two months after Massmart began consultations with workers’ unions over possible retrenchments at Dion Wired.