Telkom to cut 40% of jobs: report

Telkom is looking to trim as much as 40% of its total workforce as part of an ongoing effort to cut costs.

By - February 29, 2016 Share on LinkedIn
Telkom logo on wall

Telkom is looking to trim as much as 40% of its total workforce as part of an ongoing effort to cut costs.

This is according to a report by Bloomberg, which said that the JSE-listed company aims to cut its workforce to about 8,000 by July – having identified 6,250 positions that it wants to eliminate.

The company’s workforce was at 13,895 as of 29 January, Bloomberg said. Telkom’s staff count in 2015 was put at 18,333 – down from 19,197 in 2014, and 21,209 in 2013.

Citing an internal document, Bloomberg said that a plan known as Project High Ground will see reductions come from outsourcing 3,750 positions to other companies and moving a further 2,000 to a company it recently bought, Business Connexion.

A further 500 positions would be cut altogether.

“To secure the future sustainability of Telkom, we have to take serious actions to manage the very difficult environment within which we operate,” said Telkom spokeswoman Jacqui O’Sullivan.

“Data prices continue to drop while demand grows and we face all of this with a cost base that is not aligned to local competitors and global trends.”

Telkom’s current employee cost-to-income ratio is about 24%, which it wants to reduce to 16%, Bloomberg stated.

More on Telkom

Telkom to retrench 300 workers: Solidarity

Watch Telkom show off Boltspeed Fibre with Usain Bolt

Share your thoughts

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you think online gambling should be regulated in South Africa?

View Results

Loading ... Loading ...

More News

Political parties condemn SABC censorship

SABC logo TV screens

Political parties on Friday condemned the South African Broadcasting Corporation’s decision on limiting broadcasting of protests.

Awesome tech and gadget deals

Sale Deals

This week you can score a sweet deal if you shop at Game, Dion Wired, Makro, Loot, and Incredible Connection.

Why I left MTN

MTN shares graph

David Shapiro, deputy chairman at Sasfin Securities, explains why he is no longer an investor in MTN.

Jacob Zuma to review wives’ car benefits

Range Rover

President Jacob Zuma will be reviewing the transport benefits of his wives, and those of former presidents and deputy presidents.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
×