York Timbers, a South African timber company, has retrenched 73 workers at two of its operations during a year in which its former CEO's remuneration more than doubled. The company, which has been battling losses at its Sabie sawmill and plywood operations, said the retrenchments were necessary due to financial pressures. The Sabie sawmill had been under financial pressure and loss-making since 2018, with overstaffing and under-delivery on throughput volumes making its operating model financially unsustainable.
The former CEO, Gabriël Stoltz, who resigned at the end of March, received total remuneration of R9.54 million, compared with R4.44 million in 2025. The increase was largely due to a R5.1 million once-off payment connected to his resignation, which the company described as "non-recurring" and not reflective of an increase in his normal or performance-related remuneration. The payment was part of Stoltz's exit package, and York Timbers emphasized that it should not be seen as a standard increase in remuneration.
At the Sabie sawmill, 11 employees were ultimately affected by the retrenchment process, while at the plywood plant, 62 employees were affected. The plywood operation has since been resized to about 65% of installed capacity. York Timbers initially identified about 149 employees who could be affected by the retrenchment process at Sabie, and 138 employees at the plywood plant. The company said it had followed a consultation process with affected employees.
York Timbers' annual report also highlights illegal mining, land invasion, and security as one of its top 10 risks. The company warned that persistent illegal mining, unlawful occupation, theft, and unauthorized access on or near its properties could damage infrastructure and disrupt forestry operations. This risk is particularly pertinent in Mpumalanga's historic gold country, where gold is still mined today.
The company is taking steps to mitigate this risk, using intelligence-led security, patrols, surveillance, and access controls. York Timbers is also coordinating its response with police, municipalities, and the Vala Umgodi task team, a national operation targeting illegal mining. In March, police arrested 10 suspects at a mine in the Barberton area and seized suspected gold-bearing material and equipment, explosives, and ammunition.
Despite the challenges, there were signs of improvement at the Sabie sawmill, with the sawmill recording its first monthly profit in many years in June. However, York Timbers' formal short-term executive incentive targets were not met, meaning executives did not qualify for an award under the formal scheme. However, the remuneration committee separately approved about R3 million in discretionary bonuses.
York Timbers' revenue from continuing operations fell 2% to R1.88 billion, while interest-bearing borrowings increased 6% to R622.9 million. The company is working to address its financial challenges and improve its operations. Severe winds also damaged more than 1,000 hectares of York's Jessievale plantation in the Highveld during the year, adding to the company's challenges.
Key points
- York Timbers retrenched 73 workers due to financial struggles.
- Former CEO Gabriël Stoltz's pay more than doubled to R9.5 million.
- The company faces risks including illegal mining and land invasion.
