TELECOMS group Telkom says it has entered a formal retrenchment process in terms of section 189 of the Labour Relations Act.
Characterised by the group as a “restructuring”, it said that 15% of its workforce will be affected. At half year 2023, the group had 11,788 employees, putting an estimated 1,770 jobs at risk. The process will impact all business units and subsidiaries and is intended to ensure the sustainability of the group, it said.
In a trading update for the third quarter ending 31 December 2022 published earlier on Tuesday (14 February), the group indicated that it would initiate cost-cutting measures across the group as a result of the difficult trading environment in South Africa.
“The impact of ongoing load shedding for the quarter and the increased mobile network footprint resulted in a higher cost base for the Group. This, coupled with the required investment in working capital to
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