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News : South Africa's Telkom to Cut Jobs, Close Some Shops
Johannesburg, South Africa, Feb 16, 2015 -- South Africa's landline provider Telkom SA said it was laying off an unspecified number of staff, denying union claims that it may slash as many as 55 percent of its 18,000-strong workforce in a major restructuring.
Telkom, in which the government owns a stake of about 40 percent, is in the middle of a turnaround plan that aims to bring down costs and better compete with other wireless operators.
Telkom planned to close some of the company's 95 stores that were no longer viable, it said in a statement.
"Telkom's restructuring process is an imperative for the survival of the business and to secure the long term and sustainable growth of the company," the company said.
The Solidarity Union said 20 stores would be shut.
The union had said earlier it expected to receive a formal notice of the job cuts from Telkom on Monday in an exercise that could affect 10,000 people.
"The company's management informed the trade union that it is planning on restructuring its field force division," union spokesman Marius Croucamp said in a statement. "As many as 10,000 employees could possibly be affected by the process."
Telkom disputed that statement saying its field force -- made up of staff working outside of offices, such as technicians -- was not under discussion in talks with unions on Monday.
Any job cuts would be in the call centre, IT legacy systems, supply chain warehousing and Telkom stores, Telkom said.
Posted by Veronica Silva Cusi, news correspondent
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More Editorial From Telkom South Africa
About Telkom South Africa:
Telkom SA SOC Ltd. is a wireline and wireless telecommunications provider in South Africa, and operating in more than 38 countries across the African continent. Telkom is a semi-privatised, 39% state-owned company.
Published: Wednesday, February 18, 2015