Dis-Chem has launched a sweeping reorganisation of its corporate structure, placing hundreds of administrative jobs under review while also preparing to create new roles within the business.

The South African pharmacy retailer has begun a formal Section 189 process, the consultation procedure required under the Labour Relations Act when companies consider operational changes that may affect jobs.

More than 500 head office employees—representing no more than 2.4% of the group’s total workforce—have been asked to participate in the process.

The company stressed that store-level staff and workers at distribution centres will not be impacted, with the restructuring limited to corporate operations.

In a statement issued on Friday, chief executive Rui Morais sought to ease concerns around the announcement.

He noted that the mention of Section 189 often leads to assumptions of widespread layoffs, even when that may not be the case. Morais added that the formal notice issued to employees is required to use strict and direct wording, which can sometimes create an exaggerated impression of the situation.

Rather than focusing solely on cost-cutting, Dis-Chem indicated that the restructuring will support expansion in certain parts of the business.

The group said the changes are necessary to ensure its operating model remains aligned with its long-term objective of improving access to affordable healthcare.

Morais explained that the revised structure will include the creation of roughly 200 additional roles within key head office functions—particularly in areas that have historically received less investment.

The updated organisational model is also expected to improve accountability across departments and strengthen collaboration with the company’s innovation division, X, Bigly Labs.

This unit is responsible for developing new initiatives, including the Better Rewards programme.

Dis-Chem said the consultation process is still at an early stage and could take several months to complete.

During this period, the company reiterated its commitment to engaging constructively with affected employees and considering alternatives to job cuts, while working to reshape the business for sustained future growth.

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