Telkom embarks on internal restructure
JSE-listed Telkom on Tuesday announced that it is preparing to restructure certain operations, impacting up to 15% of its workforce across the group.
Hours after posting a fall in earnings for the third quarter of the 2023 financial year, the group reported on Sens that it will enter a formal consultation process with relevant stakeholders in terms of Section 189 of the Labour Relations Act (S189A).
The S189A process, which will impact all business units and subsidiaries and is intended to ensure the sustainability of the group, forms part of a broader restructuring programme aimed at optimising group costs in line with evolving technology capabilities and demands.
“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,” the company said in an update to shareholders.
“For Telkom to navigate the migration to new technologies as well as current economic headwinds effectively, the Telkom board has supported that management start a consultative process aimed at restructuring the organisation to meet future demands.”
Telkom assures that it is committed to minimising the impact of the restructuring and will engage with all relevant stakeholders and employees across the group.
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