South Africa: Telkom to cut 15% of staff
February 16, 2023
By Chris Forrester
South Africa’s partially state-owned telco, Telkom, has entered into a required consultation process with unions and regulators with the intention of letting go some 15 per cent of its workforce, or about 1,725 people.
“The process will impact all business units and subsidiaries and is intended to ensure the sustainability of the group,” Telkom told shareholders via the Johannesburg Stock Exchange’s news service.
The company has steadily reduced its staff head-count over the past ten years as it restructures itself and moves away from legacy copper-based wired technologies and replacing with next-generation technologies that generate lower profit margins.
“As the group manages the delicate migration of revenue between old and new technologies, it is challenged with managing the costs associated with the different technologies, and the competitiveness and sustainability of the group,” Telkom said. “Management has therefore embarked on a restructuring programme, which includes the [consultation] process, to optimise group costs in line with evolving technology capabilities and demands.”