Telkom has announced new timelines for its \u201cFit for the Future\u201d project, which include management structure changes and job cuts.<\/p>\n
Telkom management was informed that the two consultation session were productive, but that more time is needed to study the counter proposals.<\/p>\n
\u201cIn particular, leadership wants to ensure that future organisational structures will optimally support Telkom\u2019s long-term objectives,\u201d the company said.<\/p>\n
Telkom said that it will consolidate counter proposals, update both structures and job descriptions and communicate details of the placement process in June 2014.<\/p>\n
Telkom CEO Sipho Maseko previously said that he aimed to conclude the much-publicized retrenchment process of managerial employees before the end of June.<\/p>\n
On Thursday, Telkom said its expects headline earnings per share from continuing operations for the year ended March 2014, to be between 772 to 789 cents higher than its restated HEPS in 2013.<\/p>\n
Among other things, the group attributed lower selling, general and administrative expenditure as a result of cost saving initiatives implemented to its improved performance.<\/p>\n
It is anticipated that 2,635 management staff will be affected by the restructuring process, with Telkom intending to shrink its \u201cmanagement layer\u201d by as much as 25% as it looks to save R5 billion in costs over the short to medium term.<\/p>\n
While Telkom has not identified number of people who will be affected, unions put the number at 1,000 senior employees.<\/p>\n
Telkom is currently in a closed period and is expected to publish its annual results on 13 June, 2014.<\/p>\n
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