South African part state-owned operator Telkom is set to cut staff numbers and dispose of non-profitable assets as it as it looks to cuts costs, according to a new report.
Business Report claimed today Telkom is looking to make cuts to its staff of 21,000, as well as flatten management layers.
South African part state-owned operator Telkom is to offer its employees voluntary severance packages as it looks to cut costs, warning that further retrenchments may be necessary if not enough take up the offer.
HumanIPO reported in March Telkom employees were to be offered the opportunity to take voluntary severance (VSP) and early retirement (VERP) packages in a window period, as it began “rebalancing its workforce in line with its strategic imperatives”, though the company denied media reports it was set to cut 13,000 jobs.
Three months later, however, Business Report has alleged the operator is looking to dispose of staff and assets, while also reviewing supplier contracts.
The South African Press Association (SAPA) reports chief executive officer (CEO) Sipho Maseko said at the financial results presentation on Friday that suppliers would have to “eat their inflation” and “demonstrate their own cost management programmes” as customers were not willing to pay for passed-on inflation.
