Neotel staff departure
Neotel has been making headlines recently for both its plans to retrench staff in a restructuring process and its financial sustainability.
Towards the end of last year it emerged that there may be significant staff retrenchments at Neotel. The company would not comment on the speculation, merely saying that it is considering “realignment and restructuring options in order to achieve optimal growth, operational efficiency and improved service delivery to customers.”
This news came shortly before a report by Deloitte & Touche which said Neotel’s “recurring losses from operations and shareholders’ deficit raise substantial doubt about its ability to continue as a going concern.”
Neotel denied that it is facing serious financial problems, but with potential staff retrenchments and the recent announcement that Sunil Joshi will replace Ajay Panday as MD and CEO 1 April 2011 it is clear not all is well.
Other high level departures at the company, which includes staff from both their PR and legal divisions, further points to a company which is facing challenges.
Neotel spin doctor Wandile Zote is no longer at the company – it is rumoured that this is the result of internal staff conflict.
Well known telecoms legal expert Mike Silber, who held the company’s Regulatory Counsel: Policy and Special Projects position, has also left Neotel to join Liquid Telecoms as ‘head of legal and commercial’ at the company. It is believed that this move was related to a great opportunity rather than problems at Neotel.
Neotel would not provide any feedback as to whether any other senior staff members or executives left the company, and would also not comment on Zote’s departure.
“Neotel is not responding to specific questions on the re-alignment/restructuring process at this time. We will update further as key milestones are reached between now and the end of March,” the company said.
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