Cell C has begun a restructuring drive that could lead to the retrenchment of 47 employees, the mobile operator confirmed on Thursday.
This followed a statement issued by trade union Solidarity, which said the operator had informed its employees that it was “embarking on a restructuring process which could lead to job losses”.
Solidarity spokesman Marius Croucamp said that a consultation process was already underway and alternatives such as severance packages were to be considered.
Cell C spokesman Karin Fourie confirmed Solidarity’s statement. “Cell C … has commenced the process of consultation in respect of possible retrenchments. At this time, and subject to consultation with the affected employees, this process could affect up to 47 employees whether through retrenchment or redeployment. The process followed is in line with the Labour Relations Act and the company is acting responsibly.”
Croucamp said some Solidarity members have already received notices that they are affected by the process.
He said the process will be concluded by the end of July. The company employs 1 084 people.
Earlier this year, Reuters reported that Goldman Sachs had been appointed to advise Cell C parent Oger Telecom on a possible sale.
The newswire quoted Oger chairman Mohammed Hariri as saying that the company would sell its stake if the right offer was made.
Last month, Cell C has announced plans to build a 4 000-tower 4G/LTE broadband network at a cost of R8bn over three years.
In February, the company reported growing its subscriber base by 44% in the 2014 financial year, with CEO Jose Dos Santos telling TechCentral that the operator had 19,6m subscribers at the end of last year, up from 13,6m at the end of 2013.
Dos Santos said the company grew its revenues by 16% in the financial year ended 31 December 2014. — © 2015 NewsCentral Media