As part of strategic moves to remain afloat, major beverage manufacturer, DELTA Corporation Limited is to streamline its operations.

The company, however, ruled out mass dismissals in line with terminations taking place on the labour market after a Supreme Court judgment that said employers had the same rights as workers and could sack employees on notice, saying it would simply refine its structures to align them with the current and anticipated business levels.

There is increasing speculation among workers that the company would embark on wholesale dismissals which would include even senior management workers.

The speculation appears to have been triggered by a memorandum to workers by the human resources director, Marshal Pemhiwa, indicating that the company would respond to declining business by streamlining operations.

The memorandum, sent by Pemhiwa to departmental heads, said: "Naturally, we need to respond with speed to streamline our operations in line with business performance."

Delta's company secretary, Alex Makamure told C&M: "The business environment remains challenging and therefore it is paramount that businesses focus on streamlining their cost structures for survival. Our view is that no particular cost line is sacred.

Most of our internal and external suppliers, including employees, appreciate this process and are therefore supportive. It is hoped that these measures will allow the group to weather the storm and avoid significant job losses."

Makamure added: "The major thrust relates to reducing contract and casual employees, curtailing overtime and increasing productivity across our operations. Most businesses have low capacity utilisation which necessitates the rationalisation of manpower levels."

The company's middle management is apparently feeling the heat as they sounded jittery over the apparent introduction of a satellite tracking system on their vehicles.

The company has witnessed a downward spiral in business due to declining disposable incomes caused by job losses and high unemployment.

The company reported a 12 percent decrease in sorghum beer volumes for the quarter ended June 30, 2015.

"This was mainly due to the low aggregate demand, occasioned mainly by the poor performance of the agriculture sector.

The sorghum beer category has a number of long established players with Delta only accounting for 82 to 85 percent of market share. The entry of new players in the sector has mostly benefitted from the supply gaps on both our Chibuku Super and 2-litre Scud," said company secretary, Makamure.