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Telkom yet to make decision on more job cuts

Telkom said on Friday it plans to cut at least 300 jobs at its head office and further outsource 260 jobs.

Picture: Telkom website.

JOHANNESBURG - South Africa's fixed-line operator Telkom said on Monday no decision has been made to cut its workforce by about 40 percent this year as it seeks alternative ways to reduce labour costs as part of a turnaround strategy.

Bloomberg reported on Monday that Telkom has identified 6,250 positions that the company wants to eliminate by July from a total workforce of 13,895, according to a plan known as Project High Ground outlined in a document.

"The document has changed quite a bit since then. No decision has been made and it is therefore premature to speculate on the possible outcome when analysis is still underway," Telkom spokeswoman Jacqui O'Sullivan told Reuters.

The company, in which the government owns a stake of about 40 percent, said on Friday it plans to cut at least 300 jobs at its head office and further outsource 260 jobs to cut costs.

Telkom is nearing the end of the first phase of a turnaround strategy that includes cutting jobs, outsourcing services such as telephone directory printing and selling some properties.

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