Mecer lays off 5% of its staff

By Iain Scott for Mustek
Johannesburg, 10 Dec 2002

South African computer company Mecer is laying off 5% of its staff as part of an exercise to cut costs.

Hein Engelbrecht, financial director of parent group Mustek, confirms that about 40 Mecer staff members are to be laid off.

He says although the group is still performing well, "every second year we go through the organisation to see if savings can be achieved. It`s a general reality check.

"As we grow the need for efficiency becomes evident and we go through the income statement to see where we can save. Staff is just one thing - we also look at stationery and things like that."

He says the group would rather act now when things are going well than attempt to react when there is a downturn. "Everyone had a hard look at their divisions and we are cutting across the board."

Engelbrecht stresses that the group is still doing well and that the cost-cutting is a proactive measure.

Mustek reported in September that it had increased headline earnings per share by 75% to almost 98c in the year to 30 June, with all of its divisions, subsidiaries and associates improving revenue and profitability.

Net profit soared to R77.36 million from R18.52 million the previous year.

The Mustek share price was unchanged at 475c on the JSE this morning.