Earlier this week we received word that Massmart may potentially cut 1 440 jobs and now Telkom may be forced to do the same.
Unlike Massmart however, Telkom’s job cuts could see up to 3 000 employees lose their jobs.
In a letter sent to unions, Telkom revealed that the economic climate’s downward spiral, regulations and competitive restraints were having a negative impact on the firm.
The telco also said that, “continuing rapid migration from fixed voice and data business have all had a major ongoing negative operational and financial impact on Telkom.”
According to a report by EWN, Telkom will consider voluntary severance and early retirement packages for employees affected by the first phase of the job cuts. Those cuts will affect employees in Telkom’s Openserve and Consumer divisions. The first phase is expected to run from January to April.
“For Telkom to survive the current and anticipated tough trading conditions, it is imperative to seek and implement measures which will drastically reduce costs, eliminate inefficiencies and improve operational and financial performance in the interest of securing its continued commercial viability and employment for the majority of the employees,” wrote Telkom.
With Telkom now also announcing job cuts that means that nearly 4 500 South Africans may lose their jobs before the year has even left the starting gate.[Image – CC 0 Pixabay]