Telkom revealed it has paid R1.1 billion (almost USD 80 million) in voluntary early retirement and severance packages, according to the company’s latest quarterly report.
On Friday, 31 July, 2015, the Johannesburg based telecoms company released an operational update for the quarter ended June 30, 2015. The update came on the same day that over 2,000 Telkom employees accepted voluntary retirement and severance packages as part of the company’s turnaround plan.
Earlier in June, Telkom announced its plan to cut 4,400 jobs through voluntary severance packages or voluntary early retirement packages while also outsourcing 3,400 employees. The plan is a restructuring initiative which also involves an exit from the company’s Pretoria head office, and subsequent relocation to a campus at Centurion “which has been completed and is expected to reduce utility cost, depreciation and finance charges,” the company said.
The company’s mass job cut plans, though, have been temporarily dealt a blow after the Johannesburg Labour Court ruled a suspension of the process asking them to consult further with its workers’ unions before proceeding.
“The first quarter has seen a delay in our planned restructuring initiatives following a court order to halt our section 189 process,” said Telkom in its operational update on Friday.
“We have subsequently offered voluntary severance and retirement packages and to date have approved 2,399 voluntary severance and retirement packages at a cost of approximately R1.1 billion.
“On 31 July 2015, 2,136 of these employees will exit the business, with delayed exit dates for the remainder of the employees,” said the company.