Huge number of job cuts on the way at Eskom: report

Eskom chairman Jabu Mabuza has stressed the need for the state entity to shed jobs.

A report in the Sunday Times, said that Eskom will release a restructuring plan in September 2018, including how it will deal with job cuts.

Eskom reported a loss after tax of R2.3 billion for the year ended March 31, 2018, from a profit of R900 million 12 months earlier. Sales declined 0.9%, while its gearing ratio, which measures debt relative to equity, went to 72% from 68%.

It also identified R19.6 billion in irregular expenditure for the period.

Mabuza has said that Eskom has “33% more people than was necessary”, stated the report.

Eskom aims to employ fewer than 37,000 people by April 2023. This will be down from its current staff complement of 48,628.

Energy expert Ted Blom, said that Eskom is overstaffed by as many as 30,000 employees, with the utility only needing 14,000 to operate, while currently employing close to 48,000 people. The 30,000 Eskom workers are also four times over-paid compared to global averages, he said.

“If we get everything cleaned up at Eskom like we should, we could sacrifice 30,000 jobs at Eskom and create three million more.”

The latest news follows earlier reports that Eskom management was looking at laying off 15,000 staff as part of a restructuring plan.

Read: You’re paying more than double what you should for electricity in SA: expert

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Huge number of job cuts on the way at Eskom: report