The latest financial data from South Africa\u2019s largest telecommunications companies show that Cell C has higher revenue per employee than MTN, Vodacom, and Telkom.<\/p>\n
Revenue per employee \u2014 calculated by dividing a company\u2019s revenue by the number of employees \u2014 is an important ratio to measure how much money an employee generates.<\/p>\n
It is a valuable ratio to help organisations determine the efficiency and productivity of their workforce.<\/p>\n
Telkom, for example, has struggled for years with low revenue per employee, forcing it to cut its workforce significantly.<\/p>\n
Telkom started cutting staff and reduced its workforce from 61,237 employees in 1999 to 23,520 ten years later.<\/p>\n
Despite these significant staff cuts, Telkom was still considered inefficient and out of sync with its peers.<\/p>\n
Telkom currently generates R3.7 million per employee, far less than Vodacom\u2019s R8.8 million and MTN\u2019s R11.9 million.<\/p>\n
Considering Telkom\u2019s low productivity, it is unsurprising that it cut another 1,200 employees earlier this year, with more to come.<\/p>\n
Cell C has also cut much of its workforce over the last few years, but its results were significantly better than Telkom\u2019s.<\/p>\n
The mobile operator reduced its workforce from around 2,600 employees to only 900, which helped it increase its revenue per employee to R13.2 million.<\/p>\n
To put this in perspective, in 2019, Cell C generated R15.4 billion in revenue with around 2,600 employees. This equates to R5.9 million in revenue per employee.<\/p>\n
The employee productivity improvement and other cost-cutting measures are good news for Cell C, which has struggled to make ends meet.<\/p>\n
The table below shows the revenue per employee based on each telecommunications company\u2019s latest financial reports.<\/p>\n