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Telkom proposes 1,000 job cuts

The parastatal has been slammed by the CWU for its “bloodbath” restructuring plan.

Communication Workers’ Union acting General Secretary Thabo Mogalane at a news conference on retrenchments at Telkom. Picture: Sapa.

JOHANNESBURG - Blaming a lengthy term of underperformance, communications giant Telkom has tabled a proposal to cut jobs in a bid slated to save costs and improve performance.

According to reports, the parastatal is planning a massive restructuring programme which will include retrenching around 1,000 management staff and specialists by the end of July.

The overall programme will span three years and is aimed at counterbalancing fierce competition and declining profit margins.

But the proposal has been met by fierce opposition from the Communication Workers' Union (CWU) which describes the potential job losses as a "bloodbath".

The union accuses Telkom of prioritising profits over the well-being of its employees.

"This intended action by Telkom defeats and goes against the grain of government's objectives of job creation and job retention," says CWU acting General Secretary Thabo Mogalane.

"This public asset has already shed thousands of jobs during earlier rounds of restructuring and cannot afford another bloodbath."

Mogalane has accused Telkom of planning to implement job cuts without considering other alternatives.

"This exercise is nothing but sheer pursuit of profit maximisation for its own sake."

Telkom insists the plan to restructure is designed to improve profitability and secure long-term financial sustainability.

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