THE Gobabis municipality has offered voluntary retrenchment packages to staff in a move some sources say will affect up to half the workers.

The town’s chief executive officer, Ephraim Dawids, yesterday confirmed that the municipality planned to reduce costs and that one of its measures would be to ask workers to accept retrenchment.

A source told The Namibian that about 80 employees would be affected.

Dawids, who described the exercise as a “voluntary exit scheme”, said it was premature to give any figures.

“We did a business review looking at the services we provide and how we can improve,” he said.

According to him, the review found that the municipality was overstaffed and spending more on salaries than on providing services to people.

Dawids said the council’s management was still finalising its cost-cutting plan and had not discussed the retrenchment offer with staff yet.

“We don’t know how they will react. Maybe only one or two will take up the option, we don’t know,” he said.

Dawids said there would be more clarity on the plan next week.