Mxit is currently in discussions to retrench a portion of its workers, the social platform has confirmed.<\/p>\n
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.<\/p>\n
A staff member at Mxit told News24 anonymously that “the writing has apparently been on the wall for some time now, so it hasn\u2019t come as too much of a shock to staff”.<\/p>\n
Mxit will be paying them out till the end of the year and several months thereafter, News 24 said.<\/p>\n
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.<\/p>\n
Mxit\u2019s 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.<\/p>\n
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).<\/p>\n
Alan Knott-Craig Jnr leaves Mxit<\/strong><\/a><\/p>\n Mxit: on the money<\/strong><\/a><\/p>\n Mxit-Motribe deal details<\/strong><\/a><\/p>\n