Telecommunications company Telkom today announced it is looking to retrench 15% of its workforce.
The firm informed its shareholders it will enter a formal consultation process with relevant stakeholders in terms of Section 189 of the Labour Relations Act (S189A process) regarding the restructuring of certain operations.
The company currently has about 11 000 employees, meaning up to 1 600 employees will be shown the door.
Telkom follows the global pattern of job cuts, which have seen many tech companies let go of their employees, citing an uncertain economic outlook.
Local companies such as Naspers and Luno have also culled their workforce.
According to Telkom, the S189A process will impact all business units and subsidiaries, and is intended to ensure the sustainability of the group.
“As the group manages the delicate migration of revenue between old to new technologies, it is challenged with managing the costs associated with the different technologies, the competitiveness and sustainability of the group,” it says.
“Management has, therefore, embarked on a restructuring programme, which includes the S189A process, to optimise group costs in line with evolving technology capabilities and demands.”
The telco adds that for Telkom to effectively navigate the migration to new technologies, as well as current economic headwinds, the Telkom board has supported that management start a consultative process aimed at restructuring the organisation to meet future demands.
The S189A process is expected to impact up to 15% of total employees across the group, it says.
“Telkom is committed to minimising the impact of the restructuring and will engage with all relevant stakeholders and employees across the group.”
This is not the first time Telkom has announced job cuts.
In 2020, the company retrenched about 3 000 employees after facing challenges with declining revenues in fixed voice and fixed data services over the years.
In May 2019, Telkom said it cut over 2 000 jobs in 2018 and reduced permanent staff by 12.5%.
Telkom’s total permanent group workforce at the end of March 2019 was 15 296, compared to 17 472 at the end of March 2018, which was a reduction of 2 176 jobs in one year.
Telkom's staff count in 2013 was 21 209 and by 2015 was 18 333, while it was down to 15 296 the previous year.
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