“Extraordinary times” hit BCX

Business Connexion has warned that an extraordinary effort is needed to overcome its challenges, which will see various cost-cutting initiatives implemented at the company.

By - January 22, 2016 Share on LinkedIn
Telkom BCX

Business Connexion (BCX) has asked staff for an “extraordinary effort” to ensure that it achieves its budget.

The company said in a letter to staff that it, like other companies in the industry, has been hit by the economic challenges in South Africa – which resulted in revenue pressures and increased costs.

“Although business unit leadership teams seem to be doing their best to manage costs, we are facing higher-than-budgeted expenditure in certain areas to ensure we keep our high delivery standards to our customers and partners,” BCX said.

BCX said the seven months ending March 2016, which is its new year end since being acquired by Telkom, will be critical for the company, and as such it cannot afford to fail.

BCX called for stricter financial discipline, which includes cutting expenditure. The following actions need to be implemented with immediate effect, said BCX:

  • No new appointments going forward, however, appropriate motivation for critical staff to ensure delivery to our customers will be considered
  • No out of cycle increases, except in special cases
  • The appointment of contractors and sub-contractors must be contained to a minimum
  • Cost cutting on refreshments – eliminate all company-provided refreshments, with the exception of tea and coffee for meetings with external parties
  • External training courses, seminars, and conferences should be limited
  • Farewell functions and gifts for employees should be limited
  • Travel costs should be contained to the absolute minimum
  • Overseas travel must be limited to the minimum
  • Consumables need to be limited
  • External venues must not be used
  • No further expenses on flowers and gifts
  • Newspapers and magazine subscriptions must be terminated where appropriate
  • Memberships will be reviewed by Human Resources
  • Corporate Memberships must be reviewed
  • Telephone and mobile costs will be reviewed

The company also asked its managers to do a review of expenses, to prevent unnecessary spend and to gain insight into the type of expenses incurred.

“For us to be successful in these extraordinary times will take extraordinary effort,” the company said.

“We need to ensure key priorities and customer satisfaction is maintained and delivered for our success now and in the future.”

“It is important for every person to explore all possibilities to urgently change our spending behaviour right across the group.”

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