MTN said in a letter to staff that it is uncompetitive in the market, that it is always a reactor to its competitors, and that there is an imbalance between its price and value.
These are some of the challenges, MTN said, which led to a decision to retrench up to 14% of its local workforce.
“The company is faced with significant performance challenges that have far-reaching effects among all of its stakeholders (employees, shareholders),” MTN said in a section 189 letter to staff.
“At this stage, we contemplate that 847 management layer employees across the company are likely to be affected,” MTN said.
In its section 189 letter, MTN pinpointed a number of challenges within its “revenue declining business”, including its inability to “compete aggressively”, its “inconsistent proposition”, and “uncompetitive cost structures”. It added it is “perceived as ineffective”.
The group admitted that it is being “outperformed by competitors” which has led to a significant drop in market share.
“The company is proactively responding to such challenges by reviewing its operational efficiencies in an effort to rationalise costs wherever possible, support improved revenue-generation, and to help position itself for long-term sustainability,” MTN said.