1,677 Telkom Group employees have requested voluntary severance and voluntary early retirement packages, according to an internal document seen by MyBroadband.
“A total of 1,677 requests for voluntary severance and voluntary early retirement packages have been received from Openserve and Telkom Consumer employees,” stated the document.
Yellow Pages received 53 requests.
The document stated that 99.6% of the requests from Openserve and Telkom Consumer employees have been approved, and 89% have been approved at Yellow Pages.
“Although the closing date for submission of application for VSP/VERPS has been extended, the organisation has reviewed the applications already received and in line with the criteria and in consideration of business requirements.”
Employees whose requests have been approved will be discussing exit dates with their supervisors.
Telkom offering packages
On 23 January, it emerged that Telkom would be offering employees voluntary separation packages as part of its plan to reduce the number of staff at the company.
Payouts to staff based on the number of years they had worked at Telkom was part of the offer.
Telkom told staff that the cuts will take place in two phases:
- Phase 1: Openserve, Group IT, and Consumer will be affected between January to April 2020.
- Phase 2: Corporate Centre and Telkom SOC Support (HR, finance, procurement) will be affected between May to August 2020.
Telkom went on to provide reasons for the job cuts.
In the Consumer division, the cuts are a result of the business evolving away from a traditional copper-based service supplier.
It added that its “legacy operating model” is not aligned to “digital/mobile customer requirements”.
In the case of Openserve, Telkom said the wholesale division is “seeing continued decline” in its legacy-based technology revenue, with “increased push from both clients and consumers to move towards next-generation technologies”.
This article first appeared on MyBroadband.