MTN SA announces job cuts

 ·5 Mar 2014
MTN leak

MTN has announced that it has reduced the staff headcount for its South African operation by approximately 1,000 people.

According to the group, the decision was taken as a cost-cutting and right-sizing exercise at the operator.

Further job cuts are expected in 2014.

Reports of possible job cuts at MTN had surfaced as early as September 2013. At the time, MTN South Africa CEO Zunaid Bulbulia admitted that the group was reviewing “many avenues of cost reduction”.

“This involves a detailed review across various disciplines in our business and is not limited to headcount,” Bulbulia told BusinessTech at the time.

Speaking at the MTN full year results presentation in Johannesburg, Bulbilia noted that MTN had reduced headcount by about 1,000 people in latter parts of 2013.

Looking ahead, MTN SA will consider cutting an additional 400 to 500 people – or an additional 40-50% of the 1000 cuts mentioned previously.

Despite seeing Group results climb for the year ended December 2013, MTN South Africa’s results dragged on overall Group performance.

MTN Group reported a 12% rise in group revenue to R137 billion.

In South Africa, however, revenue dropped to R39.7 billion, from R41.3 billion in 2012, with ebitda down to R13.4 billion, from R14.5 billion “mainly [as] a result of lower outgoing voice revenue, which declined by 8.3% to R19.327 billion,” MTN said.

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