MTN South Africa says it has on Wednesday begun a process “to reorganise” its MTN Business unit, by opening discussions with employees as it seeks to boost profitability.
This, it said in a statement, is in line with a revised group-wide business model that seeks to reposition MTN’s enterprise business unit for future growth and service excellence.
“We are reorganising to enhance our customer service and market differentiation. We also acknowledge that the success of the new structure lies in a strong value proposition for our employees,” said Alpheus Mangale, chief enterprise officer, MTN South Africa.
“To this end, as we reorganise ourselves to focus on specific markets in a changing ICT environment, we will also be making investments in attracting, developing and retaining our talent. This is to ensure that we have the best people, best fit to deliver on our promise to inspire and enable growth for our customers.”
As part of the process, MTN said that consultations with all employees were held, in keeping with relevant employment legislation. “Employee engagements within MTN Business are expected to continue over the coming weeks,” it said.
Solidarity said that MTN notified the trade union in August of its intention to implement a restructuring process that would affect up to 847 managers.
It said that the process should be concluded by the end of November.
Bloomberg reported on Wednesday that MTN “plans to cut a number of its 578-strong business-unit workforce”.
MTN did not make it clear how many staff would be axed in this round of discussions.
The mobile operator however, said that in addition to making substantial investments in the development of its people, the unit also plans to attract new positions to its Business Unit.
“We plan to venture into certain market segments, and to successfully do so, we need to acquire the right set of skills,” Mangale said.