Several multinational corporations have recently announced plans to retrench employees, triggering widespread concern and prompting urgent government intervention. As the nation grapples with soaring unemployment rates, the implications of these mass job cuts could set off a ripple effect that deepens economic instability.
Last week, Glencore Operations South Africa disclosed its intention to lay off workers at its ferrochrome smelter and vanadium operations in Rustenburg. The company cited insufficient electricity supply and a general “lack of sustainable industry solutions” as principal reasons for these drastic measures. Glencore’s announcement is just one of a series of alarming developments affecting the workforce.
Similarly, ArcelorMittal South Africa is preparing to shut down its long steel mills, a decision that will result in the loss of over 4,000 jobs. This closure has been attributed to ongoing structural challenges within the company and the broader industry, which have reportedly remained unaddressed for an extended period.
Ford South Africa is also part of this wave of layoffs, notifying over 470 employees that their positions may be eliminated at its Silverton vehicle factory and Struandale engine factory. The reason? A need to realign production capacities in response to fluctuating market demands has prompted this drastic shift.
This surge in layoffs comes on the heels of disturbing statistics which reveal that 140,000 jobs were lost in the three months leading up to June, lifting the official unemployment rate to a staggering 33.2%, a 0.3% increase from the previous quarter.
Minister of Trade, Industry and Competition, Parks Tau, expressed the government’s deep concern regarding the job losses. Speaking on the sidelines of the Intra-Africa Trade Fair 2025 (IATF2025) in Algeria, he confirmed that the government is actively engaging with leaders of affected companies to seek long-term solutions to these escalating challenges. “We are concerned about the announcements by a number of firms. These decisions stem from both domestic and international pressures, compounded by a changing trading environment and global restructuring,” Tau said.
In light of the tariffs imposed by the United States under the Trump administration, which introduced a 30% levy on a significant number of South African exports, these companies are facing additional economic hardships. To address this issue, Tau confirmed that a revised trade proposal has been submitted to the US government, with a government delegation currently in Washington D.C. to discuss potential resolutions.
Highlighting the broader economic strategy, Tau also mentioned South Africa’s objective to harness critical minerals for the future, aiming to enhance regional value chains—a move he believes is crucial for economic development. He referenced the importance of partnerships in the automotive sector, noting that public-private cooperation has historically benefitted the industry and supported substantial employment rates, directly employing 115,000 people across South Africa.
At the assembly of business leaders at the Auto Forum during IATF2025, Stellantis South Africa’s CEO, Mike Whitfield, echoed Tau’s concerns, advocating for a level playing field and legislative clarity to attract investment in the automotive sector. He emphasised the necessity for collaboration between government, industry, and labour to sustain and grow this vital sector.
As South Africa strives to consolidate its economic stance and navigate through these tumultuous times, the commitment to fostering intra-African trade and investment remains paramount. With the African Continental Free Trade Agreement poised to further optimise the continent’s economic ties, the resilience of South African industries may serve as a beacon of hope amid mounting challenges.