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Why MultiChoice will be cutting jobs

MultiChoice says it can no longer avoid restructuring its business as it needs to adapt to changing trends in the market.

Calvo Mawela, CEO of Multichoice SA, details the findings into the company’s relationship with ANN7 at a press briefing on 31 January 2018. Picture: Ihsaan Haffejee/EWN

JOHANNESBURG - Just hours after labour federation Cosatu slammed business and government for not having a plan for the effects of the fourth industrial revolution on jobs, leading pay-TV operator MultiChoice announced it will be shedding jobs.

MultiChoice says it will start section 189 consultation processes with over 2,000 employees at its call centres and walk-in services over the next two months.

This comes after the company warned last year that it might have to cut jobs as its customers abandon call centres and other traditional contact centres for digital services.

Many argue that it’s been a long time coming, the replacement of manual labour by technology and digital services.

MultiChoice says it can no longer avoid restructuring its business as it needs to adapt to changing trends in the market.

This is exactly what Cosatu warned of in its reaction to the State of the Nation Address – saying it’s not convinced that business and the government are properly preparing for the opportunities and dangers of the fourth industrial revolution on jobs.

It criticised President Cyril Ramaphosa’s decision to locate the presidential 4th industrial revolution commission in the department of communication, saying this is not a comprehensive plan for the entire economy and society as needed.

(Edited by Refilwe Pitjeng)