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Telkom to begin consultations with unions over job cuts

The telecommunications company, which has over R11 billion worth of debt, announced it would be cutting thousands of jobs due to a weak economic environment and a rapid change in technology.

Telkom generic. Picture: Telkom on Facebook.

JOHANNESBURG - Telkom said it would begin consulting unions on Wednesday over its plans to retrench 3,000 employees.

The telecommunications company, which has over R11 billion worth of debt, announced it would be cutting thousands of jobs due to a weak economic environment and a rapid change in technology.

Telkom said while it had made the necessary investments in new revenue streams, the new trends in the telecommunications industry had taken a toll on its profits.

Labour unions called on the government to urgently intervene.

Solidarity's Morné Malan said: “Trade unions have all agreed to the moratorium on retrenchments while discussions are ongoing. Mention was also made on approaching the minister of communication with regards to the release of spectrum, which is being cited as a huge issue affecting costs and revenue.”

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