No merry Christmas for Mxit
Mxit is currently in discussions to retrench a portion of its workers, the social platform has confirmed.
Sarah Rice, head of communications at Mxit confirmed to BusinessTech that the company was engaging employees in a “voluntary retrenchment” process to address redundant positions at the company.
A staff member at Mxit told News24 anonymously that “the writing has apparently been on the wall for some time now, so it hasn’t come as too much of a shock to staff”.
Mxit will be paying them out till the end of the year and several months thereafter, News 24 said.
The news comes after former Mxit head, 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 competing platforms like BlackBerry Messenger and WhatsApp are rumoured to have played a part in Knott-Craig’s departure.
Because the retrenchment process is ongoing, and employees are still in talks, Mxit could not provide further comment, but promised more details on Monday (10 December 2012).
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