Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Investment

Telkom Planning Major Job Cuts

Article Image
Telkom is planning to shed around 3,000 jobs across a number of business units including wholesale division, Openserve. The story was first broken by Reuters which reported that the SA telco had already served trade unions with letters regarding the planned job cuts.

According to the group's latest interim results it had 15 197 total group employees at the end of September 2019, making the planned cut about a fifth of the workforce.

Telkom spokesperson Mooketsi Mocumi confirmed with Connecting Africa that 3,000 employees are expected to be affected through a Section 189 retrenchment process but said the telco would only have clarity on the final numbers once it had completed a consultation process with unions.

Mocumi said the Commission for Conciliation, Mediation and Arbitration (CCMA) will facilitate the discussions between Telkom and the unions and the consultation process will kick off on January 22, 2020.

The job cuts are due to happen in a phased approach and Telkom said that in phase one the affected divisions will be the Telkom consumer unit, Openserve and subsidiary Trudon. During phase two Telkom's corporate services will be affected.

"The tough decision to enter in to this process is a the result of a weak economic environment, in conjunction with the fact that Telkom has consistently experienced declining performances in fixed voice, which previously made-up more than half of Telkom's gross revenue; fixed data (due to migration to mobile data); and organisational and operational efficiencies," Mocumi said via email.

Over the past few years Telkom has reduced its employee numbers significantly, usually by offering voluntary retrenchment packages.

In 2015/2016 voluntary early retirement and severance packages for 3,878 employees cost Telkom R2.19 billion (US$152 million) and hurt its financial results for the year ended March 31, 2016 with a 25% drop in full-year profit after tax.

In the 2019 financial year Telkom cut another 2,176 jobs at a cost of R728 million ($50.6 million) to the group.

Telkom's staff count in 2013 was a massive 21,209 employees, but by 2017 it had dropped to 18,847. In 2019 it was reduced further, to 15,197 workers.

Telkom is said to be planning to cut 20% of its workforce.
Telkom is said to be planning to cut 20% of its workforce.

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Safaricom launches M-Pesa 'super app'

Safaricom has launched its long-awaited M-Pesa 'super app' with new features like offline mode as well as mini-apps within the app.

Story

Hot startup of the month: Nigeria's Bankly

Nigerian startup Bankly is digitizing cash for people who work in the informal sector and helping unbanked Nigerians save money, invest and gain access to credit and other financial services.

More Innovation hub

Latest video

More videos

Guest Perspectives

Story

Omdia View: May 2021

By Omdia Analysts

This month, Omdia's analysts provide context and analysis about new licenses for operators in Ethiopia and Uganda, and Nigeria's 5G rollout plans.

Story

Omdia View: April 2021

By Omdia Analysts

This month, Omdia's analysts provide context around Ethiopia's telecoms licensing process, Millicom's plans to exit Tanzania and Ghana, and Airtel Africa's successful capital raise.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

AfricaCom perspectives

Story

Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.

Story

Accelerating women in STEM: In conversation with GirlCode's Tinyiko Simbine

GirlCode co-founder and CFO Tinyiko Simbine talks about why it's important to help girls and young women excel in science, technology, engineering and mathematics (STEM) fields.

Story

How Poa Internet is unlocking meaningful connectivity in East Africa

Poa Internet's CEO Andy Halsall shares his views on what it takes to develop last-mile connectivity and get Africans online in a meaningful way.

More AfricaCom perspectives

Upcoming events

North Africa Com
July 13-14, 2021
Virtual Event
Asia Tech x Singapore
July 13-16, 2021
Marina Bay Sands, Singapore
Africa Tech Festival
November 8-12, 2021
Cape Town, South Africa
More Upcoming events

Flash poll

All polls

Archived webinars

Technologies and business models to connect the next billion

Nearly half the planet remains unconnected at a time when COVID-19 has forced people’s reliance on the Internet and digital technologies higher than ever before. Bridging the digital divide to provide Mobile Internet access – the main driver of digital inclusion – is exceedingly important in the current context. Overcoming this connectivity crisis represents a growth opportunity for Mobile Network Operators (MNO) to expand their services outside of the crowded, highly competitive urban markets.

In this webinar we will focus on solutions that help MNOs close both the coverage gap and the usage gap.

Key topics include:

  • What are the barriers to overcome increased Mobile Internet adoption?
  • How to match deployments cost with expected revenue?
  • Operator success story

More Webinars

Sponsored video

More videos

Like us on Facebook

Newsletter Sign Up


Sign Up