Dis-Chem has begun a Section 189 consultation process involving more than 500 employees as the pharmacy group restructures parts of its head office.

The company said the Dis-Chem retrenchments process forms part of a wider review of its operating model, organisational structure and working methods. However, it added that retail stores and distribution centres are not affected.

Dis-Chem retrenchments linked to head-office changes

Dis-Chem confirmed on Friday, 24 April 2026, that it had invited more than 500 employees from certain head-office departments to take part in a Section 189 process. According to BusinessTech, the affected employees represent less than 2.4% of the group’s total workforce.

The company said the review aims to strengthen its operations and align its structure with future growth plans. It said the process is still in its early stages and may take months to complete.

New Dis-Chem CEO Rui Morais said the process should not be viewed only as a mass retrenchment exercise. He said the new head-office model would add 200 jobs in departments where the group had “historically underinvested”, according to the company statement reported by BusinessTech and The Citizen.

Morais said the restructuring would create clearer lines of accountability and improve integration with X, Bigly Labs, Dis-Chem’s innovation unit. The unit focuses on strategic initiatives, including the Better Rewards programme.

What Section 189 means for affected workers

Section 189 of South Africa’s Labour Relations Act applies when an employer contemplates dismissals for operational requirements. The law requires consultation with affected employees, unions or other representatives before any final decision on dismissals.

The CCMA describes these consultations as part of a process linked to possible large-scale dismissals for operational reasons, commonly referred to as retrenchments. In some cases, section 189A facilitation may be requested through the CCMA.

For now, Dis-Chem has not said how many employees, if any, will ultimately lose their jobs. Morais said the company would consult meaningfully and explore alternatives to retrenchment.

Responses and next steps

Dis-Chem said the Section 189 notice uses “blunt and rigid language” because of legal requirements, but added that the process is intended to support future growth.

No union response was included in the supplied source material. Newsroom will update this story if Dis-Chem or employee representatives issue further statements.