Mass retrenchment looms in SA telecoms

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According to a report by BusinessTech, South African telecoms sector faces a fresh wave of mass lay-offs as companies struggle with protracted strike action, lower financial returns, and increasing competition, among other issues. 
MTN is reportedly set to start a new series of retrenchments, affecting ‘hundreds of jobs’ amid a strike by more than 2,000 employees that has dragged on for more than eight weeks, calling for wage increase and bonuses.
Telkom is planning to cut 4,400 jobs through voluntary packages or voluntary early retirement. Telkom CEO, Sipho Maseko explained that the listed operator will freeze wage bills as it continues to engage with unions on its plans to reduce its staff content. He stressed that the company cannot continue on the way it is as there is fragility in their financial structure.
Vodacom on the other hand, has announced that it is planning to outsource maintenance to cut costs, although it stressed that no jobs would be lost.
Cell C, South Africa’s third largest mobile operator notified its employees in May that it planned to embark on a restructuring process which could lead to job losses.  Cell C said in a statement: “Cell C confirms that it has commenced the process of consultation in respect of possible retrenchments.”
“At this time, and subject to consultation with the affected employees, this process could affect up to 47 employees whether through retrenchment or redeployment.”