{"id":46923,"date":"2013-10-01T10:06:32","date_gmt":"2013-10-01T08:06:32","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=46923"},"modified":"2013-10-01T11:01:42","modified_gmt":"2013-10-01T09:01:42","slug":"gijima-to-axe-more-staff","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/it-services\/46923\/gijima-to-axe-more-staff\/","title":{"rendered":"Gijima to axe more staff"},"content":{"rendered":"

Eileen Wilton<\/a>, the interim CEO at ICT Group, Gijima<\/a>, says that the troubled group will look to cut additional staff as part of an ongoing right-sizing initiative.<\/p>\n

On Monday (30 September), Gijima reported a R210.76 million loss for year ended June 2013, from a prior loss of R50.59 million in 2012.<\/p>\n

The group said that the loss of two significant contracts that expired after several years of delivery in the previous financial year, a tough market and significant top-line pressure on a major project, contributed to a challenging financial year.<\/p>\n

Revenue from continuing operations declined to R1.848 billion, from R2.22 billion, with an operating loss from continued operations at R335.6 million, from R72.1 million in 2012.<\/p>\n

Speaking at the group\u2019s results presentation in Sandton, Wilton said that Gijima had culled 500 of its workforce in the year ended June 2013, including 91 retrenchments.<\/p>\n

This excludes 350 staff who were part of mining and technology consulting firm, MineRP<\/a>, which Gijima sold in the reporting period.<\/p>\n

The group has seen its staff decline by about a third, from 3,000, to 2,000 over the past year.<\/p>\n

\u201cWe have driven costs out of the organisation,\u201d said Wilton. \u201cWe exited a number of contractors\u2026we dealt with a number of non-performers,\u201d she said, noting that that the company\u2019s costs are predominantly from its people \u2013 two thirds.<\/p>\n

She added that the contractor to permanent staff mix is approximately 70\/30.<\/p>\n

The company lead said that, in September, the company would have reduced its monthly costs by as much as R20 million, due to staff cuts, and its knock-on effect.<\/p>\n

Speaking to BusinessTech, Wilton said that right sizing of the business was not concluded with further cuts expected, \u201calthough much smaller\u201d.<\/p>\n

Looking ahead, Gijima pointed to a R4 billion pipeline, and an order book of R3 billion.<\/p>\n

Wilton said that the company has implemented a new business development unit to drive new revenue generation.<\/p>\n

\u201cGijima has renewed all its major long-term annuity contracts with key clients whose contracts became renewable during the period under review,\u201d Wilton said.<\/p>\n

The CEO said that the group had agreed an R800 million, five-year contract renewal with a major organisation, while another big firm in the mining industry with a market cap of R79 billion had also agreed to a contract, indefinitely.<\/p>\n

More news on Gijima<\/h3>\n

Gijima to reveal new CEO<\/strong><\/a><\/p>\n

Gijima suffers heavy loss<\/strong><\/a><\/p>\n

Gijima sees wider losses<\/strong><\/a><\/p>\n

Gijima CFO steps down<\/strong><\/a><\/p>\n

Gijima steps towards turnaround<\/strong><\/a><\/p>\n

Gijima rights offer results<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Eileen Wilton, the interim CEO at ICT Group Gijima, says that the troubled group will look to cut additional staff as part of an ongoing right-sizing initiative.<\/p>\n","protected":false},"author":9,"featured_media":46929,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[4346,641,26],"class_list":["post-46923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-it-services","tag-eileen-wilton","tag-gijima","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/46923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=46923"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/46923\/revisions"}],"predecessor-version":[{"id":46936,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/46923\/revisions\/46936"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/46929"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=46923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=46923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=46923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}