I predict a minimum 25% reduction in Telkom's workforce in 2012. As per
this article analysts want Telkom to mainatin an EBITDA margin of at least 25%.
To do this Telkom either has to dramatically increase its revenue or cut costs.
Telkom's revenue has been flat for the last two years and most of their revenue streams are under pressure.
Staff expenditure is Telkom's biggest cost, so this is where the cut will happen.
Telkom's retrenchment moratorium, as agreed upon with their unions, expires on 31 March 2012.
Expect blood to flow.
Now, while some of you will make some crazy comments, think of the consequences.
Do you think your service will improve or deteriorate if Telkom loses a quarter of their staff? Take into consideration that in most cases the best guys walk out first as they can find employment elsewhere (and not necesaarily in telecoms) or they are just gatvol and plan to go on early retirement. This will leave a huge gap in the workforce and us consumers will suffer.
New work is already be done by imported labour (e.g. 8ta = Huawei = Chinese labour).
So while our Supreme Leader and his Planning Council are reassuring us that job creation is their top priority, be assured that the telecoms sector will be bleeding jobs in 2012.
