Telkom needs urgent cost cutting, but plans not finalised
Telkom has reiterated the need to cut costs to turn the embattled telecommunications firm around, but notes that no action regarding reported staff cuts has been taken as yet.
Sipho Maseko, who took over as CEO of the group on April 1 last year, has initiated several strategies to arrest the company’s decline through various cost-cutting initiatives, including possible job reductions, and set the group back on a path to profitability.
Over the past few years, Telkom was besieged by declining revenue, a Competition Commission penalty, a high cost structure, a damaged reputation, a difficult relationship with government, an unfavourable regulatory environment, a weak mobile position, customer service issues and brand perception difficulties.
Newswire Bloomberg reported earlier that the embattled firm aimed to shed about 1 000 man- agers and cut back its 21 000- strong workforce by a third within five years.
Telkom says, while a decision regarding staff reduction has not been reached, employees and the market have been “made aware of the endeavour to improve efficiencies”.
“To this end, the reduction of staff costs has been reviewed and proposals regarding the approach to be implemented are still under consideration,” the group states.
Telkom says it will, prior to any implementation and at the appropriate time, engage relevant stakeholders.
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