Telkom to Cut Jobs to Improve Margins

Telkom to Cut Jobs to Improve Margins

Telkom SA has planned middle management level job cuts to reduce the costs. The company announced that the latest job cuts will impact white, male employees as it aims to comply with Employment Equity Act. The decision of Telkom management will impact 2,600 managers.

The largest fixed line telecom operator in the country has planned to cut down the expenses to improve profit margins. Pretoria based Telkom announced that the latest decision to cut jobs for majority of white employees has been taken to improve the percentage of black employees in the company.

As per the regulations, the company has to reduce the racial inequality among the workforce. At Telkom, 40 percent senior and middle management posts are currently held by White males.

Telkom CEO Sipho Maseko said that the company is facing tough challenges due to decline in revenue from voice services. The operating expenses have increased and the margins have decreased drastically over last few years. The company is also facing tough competition from mobile operators in the country.

The management informed that the length of service, qualifications, performance and gender will be considered before making the decision on layoffs. Telkom management has a tough task ahead as many of the senior level employees are expected to protest against the decision.

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