Telkom stands ground on job cuts

Telkom stands ground on job cuts
Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba, IT in government editor
15 Oct 2014

South African converged telecoms operator Telkom is pushing ahead with organisational restructuring despite resistance from labour unions.

Since April this year, Telkom has been engaged in an organisational restructuring strategy which is to result in retrenchments.

The likes of South Africa’s Communications Workers Union (CWU) has vehemently opposed job cuts at Telkom.

But in a statement the telco, which is listed on the Johannesburg Stock Exchange (JSE), said it will "not be withdrawing the Notices of Termination that have been legitimately issued in line with the agreed upon process."

According to Telkom its intention for a turnaround strategy is to secure the future commercial sustainability of the business.

Sipho Maseko, Telkom chief executive officer said in a statement, "This turnaround is a tough journey.

"These staff reductions have resulted in high levels of anxiety and we remain committed to doing all we can to limit the impact of these changes on our people."

"We do, however, need to remain focused to deliver on our collective future success”, he added.

Recently, Telkom issued retrenchment letters to 105 employees, which it said could not be placed in alternative positions within the company.

Telkom explained that the organisational restructuring has not been driven by headcount reduction targets, but rather by business imperatives.

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