Telkom SA SOC Ltd. will cut 300 head-office jobs and outsource a further 254 to a separate company as South Africa’s biggest landline operator seeks to reduce costs.
Details of the job cuts were sent by letter to employees on Thursday and labor unions have also been informed. The reduction represents about a quarter of Telkom’s 1,200-strong workforce at its Pretoria head office.
“The streamlining of our corporate center is an important step in delivering a sustainable and growing Telkom,” Chief Executive Officer Sipho Maseko said in e-mailed comments on Friday.
Telkom, about 40 percent owned by the South African government, is increasing its focus on its mobile-phone and Internet units and seeking to stabilize revenue as more customers switch to wireless services. It’s the 10th consecutive year that Telkom workers will be affected by job cuts, Solidarity Deputy General Secretary Marius Croucamp said in an e-mailed statement.
The shares fell 0.9 percent to 53 rand at the close in Johannesburg, valuing the company at 28 billion rand ($1.8 billion).