Telkom South Africa, the largest mobile network provider in the county has announced it will lay off more than 11,000 people, or about 15% of its workforce in a restructuring process.
This was revealed in a statement to shareholders released on Tuesday as the company released results for Q3 2022, which ended in December.
“As the group manages the delicate migration of revenue between old to new technologies, it is challenged with managing the costs associated with the different technologies, the competitiveness, and sustainability of the group,” Telkom said.
The telecommunications firm reported revenue growth of 2.3%, after raking in $61 million( R11 billion). However, earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 13.5%, indicating that the company continues to struggle with profitability and bottom-line growth.
“Management has therefore embarked on a restructuring program, which includes the S189A process, to optimize group costs in line with evolving technology capabilities and demands,” it said of its employee cutback plans.
Telkom South Africa Group Chief Executive Officer, Serame Taukobong said that although the company had recorded good top-line growth, a number of factors hampered revenue growth and impacted profitability.
He added, “We are mindful of these impacts on the future of our businesses and we have thus embarked on cost-saving programs to be implemented with sustainable benefits materializing over the next 6 – 18 months to mitigate cost pressures and improve the Group’s medium-term profitability.”
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