BCX chief executive officer Ian Russell has announced that he will be resigning from the company.
In an email sent to BCX employees on Friday, Russell said that he was taking the “difficult decision” to resign from the group.
He said that he had spent the last four years driving a turnaround with the Telkom Group, adding that the past 12 months had left BCX in a position for strong growth in the future.
Russell said that he will be staying on at the group for a few more months to ensure a seamless handover, as well as to work on a number of ‘critical initiatives’.
He is expected to leave the company by August 2018.
In a separate email sent to Telkom employees, group CEO Sipho Maseko announced that Jonas Bogoshi would replace Russell as the new CEO of BCX.
“Jonas joined our business in April and has extensive experience in the areas that BCX is looking to grow including the public sector which makes up 35% of BCX’s revenue,” Maseko said.
“He has also worked for technology giants such as T-Systems, SITA, Cisco and IBM South Africa and is former CEO of Gijima.”
Telkom acquired BCX in 2014 in a R2.7 billion cash offer.
As rationale for the acquisition, Telkom said it would use the BCX business to grow beyond its core business of connectivity by expanding into ICT services, while reinforcing its connectivity offering and enhancing its convergence strategy.
Telkom on Monday reported a 6.55% drop in operating profit for the year ended March 2018, to R4.9 billion, with revenue flat at R41.018 billion.
The group reported a 19.2% decrease in profit after tax to R3.158 billion.
Maseko said a weak local economy led to deferred corporate ICT spend and reduced public sector spend, which hampered BCX’s performance.
“We felt the impact of the weak economic environment, as the private and public sectors respectively deferred and lowered their information communications and technology (ICT) spend. This impacted Telkom’s performance, particularly in BCX, which serves the business sectors.”
Russell is the third senior Telkom executive to leave the company in short succession, with former head of consumer Attila Vitai, and group CIO Len de Villiers also recently announcing their exits.
Read: Telkom CIO retires