Jobs axe swings at Telkom – 20% of staff may go

Nearly 3 000 employees are likely to be affected, a source says.
Image: Waldo Swiegers, Bloomberg

It’s turning out to be a bleak start to the new year for employees at the partially state-owned telecommunications operator Telkom.

The company on Wednesday served trade unions with notices that it intends to issue section 189 notices to employees in its wholesale division Openserve as well as in its consumer business.

A source, who claims to have knowledge of the situation, said 3 000 employees are likely to be let go in the latest job-letting at the company. A Telkom spokeswoman said “potentially 3 000 employees may be affected by this process”.

That means, through this latest round of retrenchments, Telkom could reduce its staff complement by a massive 20%. At the end of September, it had about 15 000 employees on its books, according to a financial filing published on the company’s website.

The spokeswoman said the notifications to the trade unions “commences a consultation process”.

“It is our hope that through considered engagement with the unions, we will come to a mutually beneficial solution.”

Newer technologies

The job cuts at the Openserve business are probably inevitable given that Telkom announced in July 2019 that it was moving to decommission its legacy copper network in favour of newer, and easier-to-service fibre and wireless alternatives.

It started by terminating fixed copper services for prepaid customers and is now actively moving post-paid users to the newer technologies.

In its most recent set of financial results, for the six months to 30 September 2019, Telkom reported a 40.7% slump in headline earnings per share. Earnings before interest, tax, depreciation and amortisation — a measure of operational profitability — fell by 4.3%.  — (c) 2020 NewsCentral Media

This article was published with the permission of TechCentral. The original publication can be viewed here. 

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Those must be the 20% of the Telkom Staff that do not answer the telephone or do not know the meaning of customer service.

Can almost guarantee that the heads being cut have nothing to do with performance but only historical background.

Most likely the opposite, 80-90% of the Telkom staff really do NOT care at all about their jobs, or trying to help you with answering the phone. They will gladly blame everything on the honest, more committed people who still try to deliver an acceptable service. So the better 10-20% will be most likely be pushed out.

I’ve generally experienced quite satisfactory service for technical problems from the call agents and the field technicians.

However, last year I opted for fibre. Part of the deal was I was given an additional simcard, onto which Telkom would load 2GB data each month.

This is not being loaded. Sales sends you to Technical,which refer you back to Sales. Going to a physical branch is useless.

Management has no clout to personally, finally, resolve the problem, and refer it back to the call center.

Been going in circles without success to resolve what is really quite a simple problem for 2 months.

And no end in sight yet!

Those who lose their jobs should apply at Eskom because that ANC parasite has tentacles that reaches into every business. It sucks the profitability out of businesses and the spending power from households. Eskom is devouring job opportunities all over the country now. This parasite eats the job at the premises where there is an connection to the grid, and spits it out at Medupi. There is a huge heap of well-paying jobs on that side.

Darn there goes 3000 NHI contributions down the drain.
That means give or take 2,98 million taxpayers left to fund the ludicrous socialist health scheme for the 54 million souls who do not pay income tax.

The taxpayers numbers will continue dwindling what with immigration, retrenchments and land grabs imminent. The criminals in power have destroyed this country in less than 25 years, killing the goose who lays the golden egg. .When those who vote for the ANC start immigrating you come to realize that they too see the writing on the wall when their darling ANC is run by an elite group of thugs! How sad! Zimbabwe style politics!

“But hey lets blame apartheid and white monopoly capital for our woes and excuses not to move on and to loot as much as we can before we sink so deep into the abyss, turning back will be impossible”

This country is resilient and we are a lucky nation! Your sarcasm is not appreciated. Have more national Pride mate! We have a bright and phenomenal future ahead. Get your head in gear and look forward!

Firstly I’m not your “mate” Secondly this wasn’t sarcasm but facts.

It’s quite evident you don’t get out much lest you will witness first hand what i’m referring to! I too was like you once upon a time when the exchange rate was R6/$, streets were clean, Premiers were honest, A true patriot, hopeful a believer in the future, just like you UNTIL THIS HAPPENED MATE!

The very people you entrust your hopes on, and so did i, took 13 years to sign off on an approved project ! Why you might ask? Because i don’t grease palms and pay people to do their jobs!
So mate, when civil servants cannot fix potholes,when service delivery goes to the dogs and palms greased, when my project could have contributed millions ito rates, my patriotism goes into Stale Mate…mate!

Obviously the writing on the wall is totally different to what most SA citizens see – love to hear your platitudes for this bright and phenomenal future you allude to – I don’t see any green shoots under the ANC at all

Furthermore, lets agree on one thing. We as a people are resilient, this is true, but citizens don’t cause inflation, governments do with their overspending and in our case looting as well!

The experts have put the looting at R1 trillion. If i’m being unpatriotic by giving facts, a predicted growth rate of 0,9%, immigration at an all time high, cross border migration in their thousands from our neighbors putting pressure on our resource, taking jobs causing xenophobia, property market declining by 23%, job losses, bankrupt Parastatals, 3 million taxpayers out of a population of 55 million responsible for 50% of the income tax to State Coffers..and heres the cherry..Our Government is overstaffed over paid and bankrupt.

When Government is the problem and not the solution to the problem, where my dear friend is the glimmer of hope, where?

Short of people going into a revolt, a change of Government is required, only then will i agree with your statement that there is hope! Me, I’m going nowhere..We’re in for the long haul mate!

Sadly, the other day as I passed through a town on the N6 the pigs was scavenging the refuse bags (which was piling up after weeks of no removal), the municipality buildings and clinic burnt down. Sadly Dadape, the proof of our “good leaders” achievements is the fruits of the average Joe on the streets has to face.
The pigs are eating the baby nappies, we have serious problems. African pig pest is allover the country, maybe we as all SA citizens should start to realize politicians have their own “we” in all of their talking.
Once the pigs are feeding off the refuse bags in our towns, what will be next?

I presume that YOU are being sarcastic, for serious you cannot be.

In which South Africa do you live. Nothing, but nothing works in this country.

We had one of the worst leaders in history! He plundered our country and that’s not normal. We are super lucky to have been saved 2 years ago and we finally have a leader who is a billionaire and does not need the position. He has to take us out of the rut we are in and there are so many more green shoots than we’ve had in a long time! It is time to rally and support the momentum! I went to Australia and New Zealand in December and I would not move there. 49 degree weather and getting hotter and hotter, you can get cancer by stepping outside your house and affordability is getting less and less existent. We are super lucky! Let’s count our blessings. The grass is literally greener on this side. NZ relies on Skilled SA workers because their own people either dont want to work or arent well educated enough and are now a province of the chinese. Sorry for your frustration, there is lots of incompetence. But right now we need you and we need you to turn the frown upside down. You are a genuinely fantastic businessman with amazing innovation! We need your brilliance. Dont let anybody get you down and keep doing the Amazing job creation opportunities that you do. The best is yet to come. God willing!

“We had one of the worst leaders in history” yet the masses continued and still continue to vote for this organisation. During this time Cyril stood by and did nothing, effective endorsing the plunder.
Amazing how NZ relies on the people from SA to do the actual work because they want to, much the same as in SA who rely on people from ZIM, Zambia, Moz and other African countries to do the real work, because the want to. Speaks volumes about the work ethic of most South Africans.

Sadly, the ripple effect of the ZUMA wrecking ball period, still being felt in the economy 🙁

Cape town is a world class city. Umhlanga is more expensive than Sandton! Palladium is $2249 today! Platinum is over $1000. Trade surpluses are happening. Come on guys!!!!!

I am nor sure Cape Town will survive for long.

We do ourselves a disservice by speaking with negativity. It doesnt help anybody! The fact is that SOE’s are overstaffed and have been bloated up the Zuma Faction. We should be grateful that there will be less wastage on consumption and that SOE’s will become more profitable and sustainable and return to normality. This is a Fantastic thing for long term sustainability! No need for sarcasm or negativity. This is a good thing and Eskom needs to shed 25000-30000 jobs! Then you wont need to pay so much tax! Things are finally being fixed. It’s awesome! Woohooooooooo!!!!!!

You are living in denial Dadape…
The reality is that SOE’s will continue to drain the country because of the militant unions. The state is unable to deal with this.
The corruption is so entrenched that it would take years to root out the rot and replace with what? There is a lack of competence and BEE is not helping.
Our president’s position is tenuous at best. He is only one man but has awful ministers under him.. a good leader needs good lieutenants and there aren’t many. Mabuza and Magashule are already making moves to oust him and Ghordan using Eskom as an excuse. Just wait when these 2 guys are at the wheel..
The economy will further deteriorate.. no one wants to invest in a country that cant keep its lights on plus the EWC bill will only make the politicians rich. The ordinary SA citizen wouldn’t know what to do with the land.. it doesn’t feed you unless developed. Most black people are not interested in large scale farming.
This country will get so expensive just like Zim. The reported inflation rate of under 4% is a lie. Please someone tell me that med aid, school fees, fuel, food, rates and taxes has only increased by 4% this past year.
Anyone ???
The only thing that has not gone up are property prices and tax payers. I wonder why..
So the politicians can have meetings and indabas all the like.. the thing is they know what the problems are but have no idea how to fix them.

I am making moves to relocate back to Europe after 50 years here.. I want a stable government and not want to contribute to social grants of 20 million people who keep producing children so they can claim more money. Its absurd..

What about your beloved BBEEE. That is one of the major problems. Choose the most capable person for a job. Someone with work ethic, honesty and integrity. That will solve a lot of problems.

Things are finally being fixed?

Good to see someone with enthusiasm & positivity (Yes, such qualities are needed in society).

Once the 25,000-30,000 Eskom employees are retrenched, I’ll will gather this crowd & I will appoint you as their “motivational speaker”…so you can pep talk them into opening their own business start-ups.

I believe it can make a positive difference. Also get personally involved with many by helping them to face the reality of being retrenched.

The axed Telkom employees can gather outside the headquarters of the ANC, COSATU and the SACP to express their gratitude for their ‘economic freedom’.

But I thought Jabu was supposed to have turned it around? If they can cut staff at Telkom why can’t they do the same at Eskom and SAA?

Yes-remind us what his bonus was again last year for good Telkom results??????

Two days before Telkom’s announcement of staff reduction the share price is suddenly up 20% on big volume.

Someone knew!

End of comments.

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