About eight workers from Spar Westlane in Windhoek lost their jobs after the company failed to make enough money to keep certain positions.
A worker who spoke to The Namibian on condition of anonymity last week said he was given a formal notice on 31 January not to return to work but look for another job.
He said he, and four other workers from the bakery, were let go. The worker further said they would, however, receive their salaries for February.
The retrenchment letter given to the worker stated that Wecke & Voigts, which owns Spar, was left with no other option but to start formal retrenchment proceedings.
"It is with much regret that I have to inform you that after careful consideration of facts at hand, Wecke & Voigts herewith inform you that your position has become redundant due to serious financial constraints," the letter read.
Wecke & Voigts human resources officer Danika Burmeister told The Namibian on Friday that sales were not as good as they used to be.
Burmeister said the retrenchments did not come out of the blue because workers were given a month's notice and informed to look for other employment.
She further said the original plan was to retrench between 40 and 50 workers, but the company managed to let only eight out of 950 staff go. Burmeister added that they have not replaced the workers that were retrenched and they have also transferred some staff to different branches.
She noted that the retailer cannot guarantee that they will not retrench more workers in future.
"If finances and sales don't improve, we might retrench others," she said.