Telkom may sell assets - report - TechCentral

Telkom may sell assets – report

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Potential job cuts and the disposal of money-losing assets is looming at Telkom, Business Report said on Tuesday.

The restructuring came at a time when the telecommunications company ramped up its bid to cut costs and position itself to compete in a cut-throat market.

According to the report, the overhaul could see further cuts to Telkom’s staff complement of 21 000, including flattening management layers.

It also entailed a review of supplier contracts and the sale of properties countrywide.

Plans were afoot to divest of loss-making and non-core businesses and services, and to pursue mergers and acquisitions using internal funds.

Speaking at Telkom’s financial results presentation on Friday, CEO Sipho Maseko reportedly said suppliers would be effectively managed and would have to “eat their inflation” and “demonstrate their own cost management programmes”.

He added that customers were unwilling to pay for inflation passed on to Telkom by suppliers.

The decisive action was a clear indication that Maseko, who had completed about 90 days in office, would be aggressive in stabilising the company.  — Sapa

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