Today's Labour News

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telkom thumb100 BusinessLive reports that Telkom shares dropped almost 17% on Friday after the company said job cuts would cost R1.5bn.  The telecoms group has started the first phase of its retrenchment process that will result in a total 3,000 jobs being lost.  

In a market update, the company said the restructuring was a result of the technological shift to fibre and LTE as new sources of revenue.  This has been “compounded by a rapid decline in our traditional high-margin, fixed-voice business, in line with global trends”.  Telkom will use its cash reserves to pay for the cost of the restructuring to prevent increasing its debt.  Peter Takaendesa of Mergence Investment Managers commented that the next phase of restructuring was likely to be at lower financial cost for Telkom as it would affect operations such as BCX.  That company already underwent a round of retrenchments in November 2018 when it said it would cut 10% of its workforce, or about 700 employees.  He cautioned that “one can’t rule another round of retrenchments” in the next 12 to 18 months for the group that employs about 15,000 people.

  • Read the full original of the report in the above regard by Mudiwa Gavaza at BusinessLive

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