TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Moves afoot to fix Eskom’s debt problem

      4 July 2022

      Audi South Africa to offer free connectivity upgrades

      4 July 2022

      Shock fuel price increase announced

      4 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Wiocc’s data centre business, OADC, appoints CEO

      4 July 2022
    • World

      Tether fails to calm jittery nerves

      4 July 2022

      EU to impose wide-ranging new rules on the crypto industry

      3 July 2022

      Crypto hedge fund Three Arrows files for bankruptcy

      3 July 2022

      Meta girds for ‘fierce’ headwinds

      1 July 2022

      Graphics card prices plummet as crypto demand dries up

      30 June 2022
    • In-depth

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022

      Everything Apple announced at WWDC – in less than 500 words

      7 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»IT services»BCX to cut almost 300 jobs amid ‘immense financial pressure’

    BCX to cut almost 300 jobs amid ‘immense financial pressure’

    IT services By Duncan McLeod15 October 2020
    Facebook Twitter LinkedIn WhatsApp Telegram Email
    BCX CEO Jonas Bogoshi

    Telkom-owned IT services company BCX has initiated a section 189 process under the Labour Relations Act that will see further retrenchments at the company.

    The implementation of a new business model will entail structural changes to the business, BCX said in a statement on Thursday afternoon. BCX last went through a major retrenchment programme in late 2018.

    “Due to the implementation of the new operating model as a result of changing market conditions, structural changes were inevitable. BCX served the section 189 notice to unions and the CCMA in accordance with the Labour Relations Act, this morning,” it said.

    Covid-19 has had disastrous consequences for our economy, and its impact to our clients has been substantial

    CEO Jonas Bogoshi said in the statement that it is “not an easy decision for any management team to make and is never taken as a first-line decision. There were various measures implemented to try and mitigate this,” he said.

    Despite cost-cutting measures, a reduction in discretionary spend and “measures to increase business efficiencies” by “reducing business complexity”, the staff cuts are still necessary, he added.

    “These measures could not insulate us from the rapidly changing ICT landscape, changes in customer demand and the devastating impact of Covid-19.”

    ”Immense pressure’

    BCX informed employees of the decision at a meeting on Thursday. “Our main priority is to support our employees over the next few months as we go through this process together,” Bogoshi said. Responding to questions from TechCentral, BCX said about 284 employees will be affected by the section 189 process. This represents 5.8% of the company’s 4 905 permanent employees.

    “Although BCX had considered its strategic approach earlier on in the year, Covid-19 created immense financial pressure on the verticals important to its business forcing it to review its position. Covid-19 has had disastrous consequences for our economy, and its impact to our clients has been substantial,” Bogoshi said.

    He said that customer expectations were “rapidly changing prior to Covid-19”. However, the financial constraints experienced as a result of the lockdown became evident.

    “BCX had identified clients’ inability to meet financial responsibilities, received increased requests for payment options, identified a reduction in clients’ IT spend and a reprioritising of business requirements as some of the challenges. This created further pressure on BCX margins and on our ability to generate revenue.”  — © 2020 NewsCentral Media

    BCX Jonas Bogoshi Telkom top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleHow TSMC became the new Chipzilla
    Next Article Exclusive | Why Telkom is taking on Vodacom and Rain

    Related Posts

    Moves afoot to fix Eskom’s debt problem

    4 July 2022

    Audi South Africa to offer free connectivity upgrades

    4 July 2022

    Shock fuel price increase announced

    4 July 2022
    Add A Comment

    Comments are closed.

    Promoted

    Presenting the cloud finance in South Africa survey with AWCape and Sage

    4 July 2022

    The Equiano cable has landed

    4 July 2022

    Billetterie simplifies interactions between law firms and clients

    30 June 2022
    Opinion

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.