EOHTechCentral reports that EOH Holdings is poised to slash employee salaries by as much as 20% in an effort to stave off a potential Covid-19 lockdown-induced crisis at the IT services group.  

CEO Stephen van Coller said on Saturday the plan, which could include putting some staff on four-day workweeks, will be finalised by Monday.  The lockdown comes at a bad time for EOH, which is still recovering from corruption involving public sector contracts that spurred a major organisational and governance overhaul.  The intention of the drastic measures was to try to save jobs, to prepare the group for what could be a severe shock to the economy and to ensure EOH could continue delivering IT services to corporate SA, Van Coller said.  He predicted that GDP growth could crash by between 5% and 10% in the coming months and severe economic pain could last for between six and nine months.  The current lockdown could be extended to as long as six to eight weeks, he added.  Van Coller said EOH had a responsibility to protect its business to shield its clients, including banks, social grants agency Sassa, retailers, government departments and municipalities, which relied on its services to keep the economy functioning.  EOH’s salary bill is about 50% of its costs.

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