The telecoms firm has opted to move away from its legacy copper business in favour of more advanced, affordable tech.
News broke on Wednesday evening that telecoms giant Telkom has written letters to unions that it may have to retrench thousands of staff.
A potential section 189 process could see 3,000 employees affected by restructuring, which is about 20% of Telkom’s 15,000-strong workforce.
The job cuts will primarily be around its Openserve business after Telkom announced last year it would decommission its copper network in favour of fibre. Its consumer business and wholesale division will be affected.
Telkom’s shares have slumped from a major high of more than R100 last year. The price plunged to just R29.42 per share before recovering somewhat this week. The price is now at around R35.
BREAKING NEWS: Telkom has confirmed to Newzroom Afrika that it has served unions with letters regarding looming potential retrenchments. It’s understood that the Section 189 process could affect around 3000 employees. #NewzAtPrime pic.twitter.com/XbHwhum8Dt
— Newzroom Afrika (@Newzroom405) January 15, 2020
(Compiled by Charles Cilliers)