Telkom staff cuts to cost R1.5bn
Fixed-line telecoms provider Telkom has made a provision of R1.5-billion for voluntary severance and retirement packages affecting 3 108 staff.
This is according to a trading statement by the company on Tuesday.
In June, Telkom announced that it planned to cut 4 400 jobs through voluntary severance packages or voluntary early retirement packages as part of its turnaround plan.
And on Tuesday the company outlined that it has a “provision for voluntary severance and retirement packages of about R1.52-billion (September 2014: R325-million) affecting 3 108 (September 2014: 406) employees with a related tax benefit of about R446-million (September 2014: R91-million) in the current period.”
The company further announced that its basic earnings per share is expected to be 45% to 65% lower than that reported for the six months ended September 2014 but normalised basic earnings per share is expected to be 10% to 30% higher.
“The increase in normalised basic earnings for the six months ended September 30 is mainly as a result of: Lower employee expenses due to lower headcount emanating from the voluntary severance and retirement packages in the prior financial year; and higher profit on sale of properties,” said Telkom.
The company added that this was partly offset by “higher accelerated depreciation as we align our asset base to technology evolution and initiatives driving our strategic intent.”
Meanwhile, Telkom said it planned to release its results for the six months ended September 30, “on or about Monday, November 16, 2015”.
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