Telkom comments on job cuts

·10 Jan 2014

Telkom has pointed to an urgent need to address its cost base, including its human capital requirements, after a report indicated that the telco is aiming to reduce its workforce by a third over the next five years.

Bloomberg reported that Telkom CEO Sipho Maseko is planning to sack as many as 1,000 managers as part of a strategy to turn the struggling telco around – a process which he described to Bloomberg as being a “complex transformation”.

According to the report, in addition to its 21,000 employees, Telkom also uses approximately 3,000 contracted employees.

In a statement on Friday (10 January), Telkom stressed however, that to date a decision regarding staff reduction has not been reached and therefore no action has been implemented.

In June last year, Telkom said that approximately 1,400 bargaining unit and 178 management employees had exited the compnay up to 31 May 2013 as part of its bargaining process.

The statement read as follows:

“Telkom is always reviewing its business operations with the goal of reducing costs and ultimately developing a more commercially sustainable business.

“In recent months Telkom has taken several steps toward improving the performance of the business and the immediate successes have been indicated – but there is still more to do and achieve.

“There is an urgent need for Telkom to address its cost base including its human capital requirements as it substantially and directly impacts the Company’s performance.

“Telkom employees and the market have been made aware of the endeavor to improve efficiencies.

“To this end the reduction of staff costs has been reviewed and proposals regarding the approach to be implemented are still under consideration.”