Telkom said it reduced its employee count by\u00a09.5% during the financial period ended March 2013, to 19,197, from 21,209\u00a0 before.<\/p>\n
Shares in the group dipped 1% to R41.73 in early trade on the JSE, after reporting a marginal rise (1.1%) in group operating revenue for the year ended March 2014, to R32.483 billion.<\/p>\n
Telkom reported an operating profit of R4.6 million, from a prior loss of R11.15 million in 2013.<\/p>\n
Headline earnings per share, excluding the once off items, increased 35.1% to 388 cents, it said.<\/p>\n
The group said that employee expenses were 2.7% lower due to lower full time salary cost as its headcount decreased.<\/p>\n
Part time employee costs, lower provision for bonus and lower overtime also contributed to the decrease.<\/p>\n
The telco said that this was negated by a 6.8% average salary increase for bargaining unit employees, a 3.6% average salary increase for management employees and a R103 million curtailment loss on the retirement fund in the 2014 financial year.<\/p>\n
The curtailment loss, it pointed out, relates to the impact on plan assets as a result of the
\nclosing of the voluntary severance and early retirement packages offered in the 2013 financial year.<\/p>\n
Telkom is currently concluding its \u201cFit for the Future\u201d project, which include management structure changes and job cuts.<\/p>\n
It has targeted 1 August 2014, as the date “for the new organisation”.<\/p>\n
Bloomberg reported in May that Telkom planned to target white, male employees, and affecting more than 2,600 managers.<\/p>\n
White males account for 38% of senior management and 39% of middle management, according to Telkom’s 2013 annual report.<\/p>\n
Unions meanwhile, put the number at approximately 1,000 senior employees, who are facing the axe.<\/p>\n
Telkom\u2019s new retrenchment timeline<\/strong><\/a><\/p>\n