Telkom to restructure

Jobs on line in cost-reduction programme

Telkom  is to restructure four areas of its business as part of its continuing cost-reduction programme aimed at‚ among other things‚ cutting billions of rands in costs and improving customer service, it said yesterday.

The latest restructuring may lead to a number of job losses. It comes two months after the job contracts of 480 call-centre contract workers were terminated.

Telkom said the latest restructuring would focus on the call-centre operations‚ some Telkom Direct Stores‚ the information and technology (IT) legacy systems and internal printing operations‚ and supply chain and properties.

“Telkom’s restructuring process is an imperative for the survival of the business and to secure the long-term and sustainable growth of the company.

“The intention is to build the right organisation for the future by improving the business performance and unlocking efficiencies‚” Telkom group managing executive for communication and public relations Jacqui O’Sullivan said.

The latest restructuring process would result in the outsourcing of three operations to third parties while some Telkom Direct Stores employees could possibly be retrenched.

The group said it had conducted detailed analyses of the viability of all the Telkom Direct Stores. “The research has shown that it is‚ unfortunately‚ no longer viable to continue running some of the company’s 95 stores.”

O’Sullivan said Telkom had completed a stringent procurement process and had identified external companies to undertake call-centre operations‚ the management of IT legacy systems‚ the management of Telkom warehouses in the supply chain area of the business‚ and take over internal printing activities.

She dismissed claims by trade union Solidarity that the group was restructuring its field force division and that as many as 10 000 employees could possibly be affected by the restructuring.

She said a meeting with unions would be followed by the initiation of the formal consultation process. “The Telkom field force is currently not part of the discussions with organised labour.”

-Thabiso Mochiko

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