Retrenchments sweep across key sectors; 1,800 job losses in 3 months

By Kwanele Dhladhla

The Ministry of Labour and Social Security has confirmed a surge in retrenchments in Eswatini, with 15 companies notifying authorities of workforce reductions between July and September 2025.

The Acting Labour Commissioner, Kingdom Mamba, disclosed that a total of 1,821 employees were affected during these three months, underscoring the mounting economic pressures facing the country’s industries.

Mamba said the retrenchments cut across multiple sectors, but the hardest hit were Textile and Apparel, Security, and Mining, which together accounted for more than 1,500 job losses.

Mamba revealed that the Textile and Apparel sector recorded the highest number of job losses, with 572 employees retrenched.

“Textile companies remain vulnerable to market fluctuations and financial pressures, particularly because they are heavily reliant on export markets. The recent developments clearly show how exposed this industry is to external shocks,” Mamba said.

The Industrial Relations (IR) unit’s quarterly report shows that two major firms carried out retrenchments.

African Knitwear laid off 432 employees, citing financial constraints.

Spintex Eswatini retrenched 140 employees, attributing the move to market losses.

These retrenchments come against the backdrop of persistent challenges in global textile markets, with reduced demand affecting Eswatini’s export-oriented producers.

The sector is one of the country’s largest private employers, meaning the ripple effects of such retrenchments are widely felt across communities.

The security industry emerged as the second hardest hit, with 560 workers losing their jobs in July.

According to Mamba, the largest contributor to these job cuts was Guard Alert, which terminated contracts for 400 employees due to the end of contract agreements.

Another significant player, S.A.S Services, retrenched 160 workers, also citing the end of the contract as the reason.

“The security sector often operates under contracts tied to corporate or institutional clients. When such contracts expire and are not renewed, it inevitably leads to workforce reductions,” Mamba explained.

The Mining sector followed closely as the third most affected, with 431 employees retrenched. The bulk of these were from Maloma Colliery Limited, the country’s largest anthracite coal producer.

Maloma was forced to restructure operations after its biggest customer in South Africa scaled down production. “Maloma retrenched 345 workers in August due to restructuring,” Mamba said.

The company’s Chief Executive Officer, Jabulile Shabangu, recently confirmed that the mine had been forced to shut down one shaft and cancel an entire shift, resulting in an additional 215 employees losing their jobs.

“Maloma Colliery’s clients are mainly smelters who use anthracite coal to generate high temperatures for melting ore and to produce carbon monoxide needed for stripping oxygen from iron ore.

When 14 smelters in South Africa shut down last month, the demand for anthracite fell drastically. We had no choice but to remodel operations and reduce staff,” Shabangu said.

Another company, Zakhona Mining, closed completely in August, rendering 86 employees jobless.

The retrenchments in the mining sector reflect broader regional challenges. In South Africa, ArcelorMittal SA and Goodyear recently shut down operations, while Glencore Ferroalloys announced sweeping retrenchments at its Boshoek, Wonderkop, and Rhovan operations.

CEO Japie Fullard confirmed in a communiqué that further streamlining at Lion Smelter, Rustenburg, and Lydenburg operations was also under consideration.

South African media reports estimate these retrenchments could cost more than 3,500 jobs, worsening an already strained labour market and affecting Eswatini’s trade balance.

While textiles, security, and mining accounted for the bulk of retrenchments, other sectors also reported job losses:

Building and Construction: J & E Construction retrenched 80 workers due to project completion, while Roots Construction let go of 40 employees because of business restructuring.

Non-Governmental Organisations (NGOs): Multiple NGOs, including URC, Georgetown University, SWAGGA, US Peace Corps, and Georgetown Global Health LLC, collectively retrenched 127 employees, citing financial constraints or project completion.

Retail: Destiny Music has shed 11 employees due to business restructuring.

The retrenchments come as Eswatini battles a 35.7 per cent unemployment rate, with youth unemployment alarmingly high at 58.1 per cent. The country’s dependence on South Africa for trade has compounded the problem.

In 2024, Eswatini’s exports to South Africa stood at E2.09 billion, while imports reached E2.46 billion, highlighting the vulnerability of local industries to external shocks.

“The migration of international companies out of South Africa and the volatile macroeconomic environment across the region have serious knock-on effects for Eswatini.

This calls for urgent government interventions to safeguard jobs and stabilise industries,” Mamba stressed.

Industry leaders have echoed the call for government support, particularly in the mining sector, where production challenges, high electricity costs, and weak global demand continue to hamper operations.

“Retrenchments are always a painful exercise, and our priority is to ensure consultations are held with employees and representatives.

However, without broader policy and economic interventions, companies will continue to struggle to retain workers,” Mamba said.

The Acting Labour Commissioner assured that the ministry would continue monitoring developments closely and provide mediation where possible.

He emphasised that while redundancies cannot always be avoided, transparent processes and adherence to labour laws remain critical.

As retrenchments continue to climb, the challenge for Eswatini lies in balancing industrial sustainability with protecting livelihoods in an economy already burdened by high unemployment and heavy reliance on its regional neighbour.

Side Bar

· 15 Companies have notified the Ministry about retrenchments
· 1821 employees affected in the process
· The most affected sector was Textile and Apparel with 572 employees
· The second most affected sector was Security, with 560 employees
· The third most affected Sector was Mining with 431employees