Business Report writes that Telkom said on Monday that it planned a major restructuring after its profitability tanked on the deterioration in fixed-voice revenue as a result of the coronavirus pandemic.
The company, whose subsidiaries include Gyro, Openserve and the Yellow Pages, announced it planned to restructure its programmes, cut costs through its restructuring programme and other cost levers to protect the profitability. Chief executive Sipho Maseko said the company needed to focus on managing its costs and acquiring profitable revenue. He indicated that the group would not pay a 14th cheque across its operations, as financial triggers had not been met. “We are entering tough times,” said Maseko, adding that the group would not pay annual salary increases during the financial year in review due to the pedestrian state of the economy and the need to manage affordability. Telkom has offered 2,271 employees voluntary severance packages at a cost of R1.18bn. Maseko also said that thus far 57 employees had tested positive for Covid-19.
- Read the full original of the report in the above regard by Dineo Faku at Business Report
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