Telkom plans to cut 15% of staff amidst restructuring efforts

South African telecoms group Telkom has introduced that it’ll embark on a restructuring course of that can have an effect on 15% of its 11,000 plus workforce. 

In a press release on the Johannesburg Stock Exchange information service, the corporate acknowledged that the method will impression all enterprise items and subsidiaries and is meant to make sure the sustainability of the group.

“As the Group manages the fragile migration of income between outdated to new applied sciences, it’s challenged with managing the prices related to the completely different applied sciences, the competitiveness and sustainability of the Group.

Management has subsequently launched into a restructuring programme, which incorporates the S189A course of, to optimise Group prices in keeping with evolving expertise capabilities and calls for,” reads the assertion.

In its Q3 monetary outcomes for the interval ended 31 December 2023, Telkom reported that its income was up 2.3% to R11 billion however its earnings earlier than curiosity, taxes, depreciation, and amortisation (EBITDA) are down 13.5% to R2.5 billion, displaying the corporate’s continued wrestle with profitability and backside line development.

To handle these challenges, Telkom acknowledged that it was planning to embark on cost-saving applications to be applied with sustainable advantages materialising over the subsequent 6 – 18 months to mitigate price pressures and enhance the group’s medium-term profitability. The advantages of the initiatives, together with the restructuring, are anticipated to be tangible within the subsequent few years.