‘Job Cuts; Crisis in SA Economy and Require Immediate Government Intervention’

Parliament, Friday, 19 September 2025 – The Chairperson of the Select Committee on Economic Development and Trade, Ms Sonja Boshoff, has expressed grave concern at the scale of reported job losses pending at Coca-Cola, following similar announcements by several other major companies in recent months.
 
Ms Boshoff said the pending job cuts threaten the livelihoods of thousands of South Africans. “Unless urgent and coordinated action is taken, the damage to our economy, communities, and industrial base will be irreversible. The stakes are high, and these job losses will push families into greater precarity, further eroding trust in our economic stability,” said Ms Boshoff.
 
She added that regions such as the Eastern Cape (where Goodyear’s plant is located), Bloemfontein, East London, Newcastle, Vanderbijlpark, and others are already vulnerable, and these retrenchments will only amplify socio-economic stress.
 
Media reports revealed that Coca-Cola Beverages South Africa (CCBSA) intends to cut about 680 jobs. This announcement comes at a time when a number of companies have already reduced operations, resulting in widespread job losses.
 
Ms Boshoff said this was deeply concerning, given South Africa’s stagnant economy and the country’s already exponential unemployment levels. “It concerns the committee that small businesses, suppliers, service providers, and the informal sector are being thrown into uncertainty by these ripple effects,” she said.
 

• CCBSA which employs over 7,000 people nationally will cut approximately 680 jobs through restructuring.
• Goodyear South Africa: The planned closure of the Kariega manufacturing plant will end manufacturing at that facility, placing roughly 900 jobs at risk.
• ArcelorMittal South Africa plans to cut 4,000 roles, almost half of its South African workforce, including major cuts to its flagship Vanderbijlpark steel plant.
• Ford Motor Company South Africa has indicated that over 470 employees will lose their jobs across the Silverton assembly plant, Struandale engine plant, and administration.

In total, the automotive industry has experienced more than 4,000 job losses over the past two years, as 12 companies in the sector have been forced to close their doors.

Ms Boshoff said these figures underscore the urgent need for government to arrest the industrial decline in South Africa by making the right market choices and investing in clean energy and stable power supply.

“Consumers have less spending power, municipalities have less revenue, and households are struggling. Without immediate and coordinated action, we risk a downward spiral that will be difficult to reverse,” emphasised Ms Boshoff.

She urged government to convene an emergency multi-stakeholder summit with affected companies, labour unions, and provincial governments to develop concrete interventions that protect jobs, stabilise industries, and restore investor confidence.