Motus Group’s 2026 job cuts highlight the reality of navigating job cuts and salary cuts in 2026. Learn the impact, employee rights, and debt options.
South Africa has entered 2026 facing continued economic pressure, and the automotive retail sector is already feeling the impact. One of the country’s largest vehicle retail groups, Motus Holdings, has started the year with job cuts and salary and benefit adjustments, highlighting the growing reality many households now face.
For affected workers and their families, navigating job cuts and salary cuts in 2026 requires more than awareness — it requires informed action, early planning, and a clear understanding of available financial options.
What Happened at Motus Group?
Motus confirmed a restructuring process that began in late 2025 and carried into early 2026, following a formal Section 189 Labour Relations Act consultation process.
Key developments include:
- 86 employees retrenched
- 579 employees affected by changes to remuneration and benefits from January 2026
- Adjustments linked largely to pressure on new vehicle sales
According to TimesLIVE, Motus confirmed that while retrenchments were limited to 86 positions, hundreds more employees would experience changes to long-standing pay and benefit structures
👉 https://www.timeslive.co.za/motoring/2025-12-31-car-retail-giant-motus-retrenches-86-staff/
IOL Business Report further noted that these decisions were driven by financial pressure in the motor retail sector
👉 https://iol.co.za/business-report/companies/2025-12-31-motus-retrenches-86-employees-as-financial-pressures-mount-in-motor-retail-sector/
With more than 13 000 employees in South Africa, Motus’ restructuring has consequences that extend far beyond the individuals directly affected.
Why Job Cuts and Salary Cuts Are Escalating in 2026
1. Declining New Vehicle Sales
High interest rates, rising living costs, and reduced consumer confidence have pushed many South Africans to delay vehicle purchases or opt for cheaper alternatives. New vehicle sales — traditionally a key profit driver — have softened.
2. Competition from Chinese Vehicle Brands
As reported by BusinessDay, the influx of competitively priced Chinese vehicles has placed sustained pressure on traditional dealership groups
👉 https://www.businessday.co.za/motoring/2025-12-31-motus-axes-jobs-as-chinese-car-brands-squeeze-sa-dealers/
These brands are attracting cost-conscious consumers with lower prices and strong feature sets.
3. Rising Operational Costs
Energy, logistics, staffing, and compliance costs continue to rise, forcing companies to restructure to remain sustainable.
The Real Financial Impact on Employees
Job Loss
For retrenched employees, income loss is immediate.
Example:
A single-income household earning R20 000 per month (CTC) loses:
- ±R240 000 per year
This often leads to rapid financial distress if no contingency plan exists.
Salary and Benefits Cuts
For employees facing cost-to-company reductions of up to 30%:
Example:
- R20 000 monthly CTC
- 30% reduction = ±R6 000 less per month
- ±R72 000 less per year
Even without retrenchment, this level of reduction can destabilise household finances within months.
Retrenchment Survival Checklist: What to Do Immediately
If you are retrenched or your income has been reduced, early action is critical.
✅ 1. Know Your Labour Rights
- Confirm that the Section 189 process was followed correctly
- Severance pay must be at least one week’s remuneration per completed year of service
- Ensure outstanding leave, notice pay, and benefits are correctly calculated
✅ 2. Rework Your Budget Immediately
- Prioritise housing, food, transport, and school fees
- Cut discretionary spending early
- Protect cash flow before debt becomes unmanageable
✅ 3. Engage Creditors Early
- Contact banks and credit providers before missing payments
- Request temporary payment relief or restructured instalments
- Early engagement reduces legal and credit-record risk
✅ 4. Avoid Short-Term Loans
Personal loans and payday credit used to replace lost income usually worsen long-term financial distress and delay sustainable solutions.
When Debt Relief Becomes Necessary
For many households navigating job cuts and salary cuts in 2026, budgeting alone may not be enough.
Debt Review
Debt review may be appropriate if:
- You still earn an income, but it is no longer sufficient
- You need reduced instalments and legal protection from creditors
Learn more about how debt review works in South Africa:
👉 Debt Problems – Debt Review / Debt Restructuring – CureDebt
You can also read Insolvency Care’s educational guide on available debt solutions:
👉 https://insolvencycare.co.za/2023/11/04/debt-solutions-for-you-2/
Insolvency and Sequestration
In cases of complete income loss or overwhelming debt:
- Insolvency may provide structured legal relief
- It can stop creditor action and allow for financial rehabilitation
Insolvency Care explains the difference between debt review and sequestration here:
👉 https://insolvencycare.co.za/2025/07/18/do-you-think-sequestration-is-the-smarter-alternative/
These processes exist to provide protection — not punishment — when debt becomes unsustainable.
Why 2026 Demands a New Financial Mindset
Motus’ restructuring reflects a broader shift in South Africa’s economy. Sectors once considered stable are now vulnerable to global competition, affordability pressures, and structural change.
For employees, this means:
- Planning for income volatility
- Understanding debt risks early
- Seeking professional guidance before crisis point
Final Thoughts
Navigating job cuts and salary cuts in 2026 is no longer a theoretical risk — it is a lived reality for many South African households. The Motus Group restructuring underscores how quickly industry pressure can translate into personal financial hardship.
While retrenchments and income reductions are deeply unsettling, early action, informed decisions, and access to the right information can prevent short-term setbacks from becoming long-term financial damage.
If your income has changed, the most important step is this:
don’t wait until debt spirals out of control before seeking help.
Disclaimer: This article is intended for informational purposes only and should not be construed as legal advice. If you are considering voluntary surrender of estate or any form of insolvency, we strongly recommend speaking directly with one of our qualified attorneys and specialist consultants.