TechCentral reports that Remgro-controlled telecommunications company Dark Fibre Africa (DFA) has informed staff that it will be embarking on a restructuring programme that will include retrenchments.

CEO Andries Delport confirmed on Monday that the company had initiated a consultation process that would lead to a not-insignificant reduction in DFA’s 660-strong headcount. Delport declined to say how many employees would be affected by the restructuring, saying exact numbers would be determined through the consultation process. The move comes just two months after Vodacom Group agreed to acquire a co-controlling interest, along with Remgro and New GX Capital, in a new entity made up of assets including DFA and its sister company, Vumatel. Delport, who was previously Vodacom’s group chief technology officer, denied that Vodacom’s investment was the driver behind the cost-cutting exercise. “It’s unrelated to Vodacom or anything else. This is a plain business decision [by DFA],” he claimed. The simple fact, Delport said, was that DFA had too many employees and its cost structure was too high in what had become a highly competitive market. Internal benchmarking against competitors had borne this out, he added. Delport said the restructuring would not simply be about retrenching staff. Rather, employees would be given the opportunity first to apply for voluntary separation packages. Delport emphasised that the company would not let go of key skills. It would also work at providing “mutual separation agreements”.

• Read the full original of the report in the above regard by Duncan McLeod at TechCentral

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