More people losing jobs during SOE period

Vitis Industries Limited has laid off more than 600 employees due to the State of Emergency and prolonged liquor ban over the last two months.

The company has reported a significant decline of up to 70% in sales which has directly placed more than 3,000 families in serious hardships.

The Vitis company directors are faced with a serious dilemma as business uncertainty sets in; they wonder what the “new normal” will look like and how it will affect business continuity.

Vitis Industries general manager Dr Sergey Mosin said other major corporations might withstand such losses in sales revenue and profitability due to their strong cash flow positions.

Unfortunately, Mr Mosin said Small to Medium Enterprises like theirs could not survive long shutdowns and liquor bans.

He stressed that more than 90% of their revenue is derived from the alcohol manufacturing and distribution business.

The alcoholic beverage business has been the worst affected due to the liquor restrictions implemented by the various Liquor Licencing Boards in the country.

“We have since shut down a number of production lines and laid off almost 30% of our workforce.

“We pay weekly excise taxes to the national purse but these have declined by more than 70%.

“Liquor restrictions and bans failed to achieve the desired results. The demand for alcohol consumption remained high during the restrictions,” Dr Mosin said.

He said consumers resorted to illicit products, resulting in loses in company revenues, employee incomes, family livelihoods and government tax incomes.  

Vitis Industries employs close to 2,000 people.

At least 12,000 family members will be affected by the loss of employees.