Management shake-up at Telkom
Telkom has sent a letter to all of its 2 635 management staff, telling them they may be affected by a retrenchment process that could be in the offing, because of its "unsound" financial situation; a move that has led to chaos and other staff fearing for their jobs.
The letter explains the telco is in an "unsound" financial state, facing increasing costs and dwindling revenue, despite its previous bids to cut costs – including last year's voluntary retrenchment and early retirement process. It notes Telkom wants to implement a flatter management structure, which could lead to some staff being out of work.
Telkom has 19 215 staff, of whom 2 635 are categorised as management and specialist employees; a ratio of 6.3 workers to each manager. Telkom explains it "intends to reduce the management layer by about 25% by the end of the process," which puts the number of jobs on the line at around 650, close to the rumoured 1 000.
Alternatives such as outsourcing and joint ventures may also be explored as part of the business and organisational restructure in the future, it says in response to a request for comment. "Telkom intends to build the right organisation for the future by improving the business performance and unlocking efficiencies."
Read the entire article on ITWeb here.
 |
Nicola Mawson is ITWeb deputy news editor who hates corruption of any sort. She does not drive a million-rand Beemer and would rather walk. |
