Telkom shares rise sharply on sweeping job cut plan - TechCentral

Telkom shares rise sharply on sweeping job cut plan

Telkom shares jumped on Thursday after it emerged on Wednesday evening that the company plans a major retrenchment round that could see up to a fifth of its workforce let go.

TechCentral reported on Wednesday that Telkom has served notices on trade unions that it plans to begin a fresh round of job cuts under section 189 of the Labour Relations Act. As many as 3 000 of Telkom’s 15 000-strong workforce, or 20% of the total, could be affected by the move.

Telkom shares rose as much as 8.1% to R37.41 shortly after markets opened in Johannesburg on Thursday. They were last quoted at R36.70, up 6% on the session.

A Telkom spokeswoman told TechCentral on Wednesday that the job cuts will mainly be in its wholesale Openserve division and in its consumer business.

She said the notifications to the trade unions “commences a consultation process”.

“It is our hope that through considered engagement with the unions, we will come to a mutually beneficial solution.”  — (c) 2020 NewsCentral Media

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