Mxit retrenches 41 employees
Mxit has announced that it will be retrenching 41 employees as the social network moves to refine its business strategy and aims to double its user base in 2013.
Last week it was reported that Mxit was in discussions to retrench some of its 150 permanent staff. Those discussions have now concluded and Mxit has confirmed that 41 of its employees would be let go.
Mxit has faced an uncertain time since former CEO Alan Knott-Craig Jnr unexpectedly stepped down from the company on 18 October, citing differences between himself and his shareholders.
Mxit’s lackluster financial performance, and its battle to grow amidst stiff competition from platforms like BlackBerry Messenger and WhatsApp are rumoured to have played a part in Knott-Craig’s departure.
Since his departure, Mxit’s acting-CEO, Francois Swart has taken over control of the company, tasked with pegging a new strategy for the social network.
Part of this strategy is downsizing the company in certain areas, he said.
Francois Swart
“We have just completed a thorough and intense strategic planning process in which the whole business was involved at some level in the process,” Swart said in a statement.
“Our goal is to more than double our user base during the next year. To achieve this we need to take a very focused approach to what Mxit does and does not do. Regrettably that means stopping or cutting back activities in some areas.”
Mxit approached those individuals whose positions were highlighted as being at risk with a voluntary redundancy package, the group said.
The company has accepted the voluntary retrenchment of 41 of its employees.
Looking ahead, the R100-million investment Mxit secured in October, as well as the savings from company-wide costing cutting, is to be channeled into key growth areas, the company said.
This includes self-service community creation tools, developer support, technology innovation, advertising partnerships and collaboration with key companies and brands.
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