Cell C says it has entered into a consultation process to retrench up to 960 employees.<\/p>\n
Affected employees include junior management and semi-skilled staff, the company said.<\/p>\n
\u201cCell C can confirm that it is has reached a difficult decision and initiated discussions with junior management and semi-skilled staff to implement a restructuring of its operations so as to align the organisation with its new operating model,\u201d the company said in a statement.<\/p>\n
\u201cEarlier this year, senior management positions were aligned to this revised operating model and new organisational structure.\u201d<\/p>\n
Cell C said this process was completed in May and resulted in 30 senior management staff being retrenched.<\/p>\n
\u201cThis current consultation process in terms of Section 189A (2) of the Labour Relations Act advises staff of the possibility of redundancy of certain positions and possible retrenchments.\u201d<\/p>\n
The company said that no final decision had been made and the consultation process with affected employees is meant to obtain input for consideration before a final decision is made.<\/p>\n
\u201cAlong with these cost-cutting initiatives, together with the revised network strategy the company is adopting and the changing competitive environment, it has became necessary to review Cell C\u2019s operating model and organisational structure,\u201d Cell C said.<\/p>\n
\u201cIt is the company\u2019s view that over time the operating model has resulted in a number of inefficiencies.\u00a0This is contributing to the operating and financial challenges the company currently faces.\u201d<\/p>\n
It added that it is also looking at a number of \u201coutplacement opportunities\u201d in the learning and development space, and will include a reskilling initiative for employees.<\/p>\n
New operating model<\/strong><\/p>\n Cell C CEO Douglas Craigie Stevenson\u00a0previously said<\/strong><\/a>\u00a0that as part of its reorganisation, Cell C would do its best to up-skill and cross-skill staff as it improves the efficiency of the business.<\/p>\n \u201cYou can\u2019t forget where Cell C was. As a business, it was hopelessly inefficient,\u201d he said.<\/p>\n \u201cAt one stage we had probably around 2,900 staff. You compare that to Vodacom and MTN, and it does not make any sense.\u201d<\/p>\n He previously foreshadowed these major job cuts and said that the company would do what it could to cross-skill and up-skill its existing staff \u2013 especially the technical divisions.<\/p>\n This article originally appeared on MyBroadband. You can read it here<\/a><\/strong>.<\/p>\n
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