Telkom To Retrench 15% of Its Workforce As Group Focuses on Slashing Costs and Restructuring Operations

• 15% of Telkom's employees are on the chopping block after the group decided to start a formal retrenchment process
• The mobile network operator announced it was implementing cost-cutting initiatives to cope with a weakened economy
• Increased loadshedding is reportedly one of the factors that have put pressure on the group's cost base

PRETORIA - Mobile network operator Telkom is looking to axe some of its employees to slash costs.

The telecommunications company announced that it would begin a formal retrenchment process that will see 15% of its employees struck off the workforce.

The move comes as the group shifts focus to reducing operating costs and restructuring operations. Telkom added that the restructuring would affect all business units and subsidiaries.

Telkom is turning to this cost-cutting initiative to cope with South Africa's weak economy and manage the mobile network operator's transition to newer technology.

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Telkom said that a mixture of investing more in its post-paid business to create more predictable revenue streams and increased power cuts impacted costs, Moneyweb reported.

What other cost-saving initiatives is Telkom implementing?

The group hopes to raise R1 billion before the end of the 2023 financial year by selling different devices to financial institutions.

According to The Citizen, Telkom has already implemented several cost-cutting initiatives and hopes to see the benefits in its 2024 financial year.

South Africans blame ANC for Telkom's retrenchment plan

For many citizens, all roads from SA's hardships lead back to the ruling party.

Below are some comments

@benoitleroy123 said:

"I am sure it inherited useless cadres from its SOE days and now can shed the waste?"

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@peterthomas661 slammed:

The ANC's single biggest claim to fame is 'job shedding'."

@RGRSA quipped:

"The New Dawn is overwhelming us."

@SbusisoF19 added:

"SA Unemployment Rate Stage 6."

International Monetary Fund warns of tough financial year for global economy in 2023

Earlier, Briefly News reported that the global economy is heading into choppy water as the International Monetary Fund (IMF) warns that 2023 will be a more challenging financial year than before.

The IMF's Managing Director Kristalina Georgieva said the organisation anticipates that a third of the world's economy will go into recession. This is because three of the biggest economies, the US, the European Union (EU) and China, are slowing down at the same time.

Source: Briefly News