According to media reports, Telkom is planning to restructure four areas of its business in an endeavour to save costs. This follows claims by the union Solidarity that as many as 10 000 employees could be retrenched. The Group Managing Executive for Communication and Public Relations, Jacqui O’Sullivan, denied the claims by the union. O’Sullivan spoke to CapeTalk's Kieno Kammies about Telkom’s plans to implement cost efficiency strategies.
Telkom needs to establish a market related ratio of staff expenses to revenue. Currently we are sitting at about 30 percent. We need to get to 25 percent over the next five years.
The four identified areas include:
- The call-centre operations
- Telkom Direct Stores
- Supply chain and warehousing
- The information and technology legacy billing systems
According to O’Sullivan, an analysis was conducted on 95 of the Telkom direct stores. From the analysis, 20 stores were considered unviable which will lead to some Telkom Direct employees being retrenched if no alternative positions are found within the company.
O’Sullivan says that the implementation of the turnaround strategy started last year with management and already they are seeing some savings.
The whole focus of this turnaround strategy is to try and do something that Telkom has not succeeded in doing which is putting customers first
She says that at this point Telkom is not in a position to talk numbers to validate claims by Solidarity.