NAIROBI, Kenya, May 30 – Altech Kenya Data Networks (KDN) has laid off at least 51 employees in its ongoing staff reduction exercise. The company attributed the decision for the cuts to business demand and need to reduce its cost base.
The telecommunications infrastructure provider said following a comprehensive market analysis, the company has begun a collective consultation process with staff to discuss plans for a reduction in staff numbers.
“This was a very difficult decision for KDN as it affects our colleagues and friends, but it is absolutely essential that we do so in order to remain viable in these very challenging times, and we are doing all we can to minimise job losses,” said Shahab Meshki, KDN Chief Executive Officer.
Over the next several weeks the company expects to complete the majority of employee transitions in line with retrenchment procedures as stipulated in the Employment Act, 2007.
“We understand that this will be a very difficult and challenging period for our employees, but we are managing this process fairly while respecting our employees’ rights and dignity. This is about ensuring the long-term sustainability of our business, which in turn impacts on our ability to contribute to the future of Kenya and its people,” Meshki added.
“The actions that we have taken will eliminate inefficient duplications that existed in our business. We have had to rationalise operational positions,” said Meshki.
“Current services to our customers will not be negatively affected by these changes. In fact, we will be leaner and more efficient and this will make a material and positive difference to the quality of services we are able to deliver to our customers. We remain confident about where the business is going as we remain committed to our growth strategy and our customers,” he concluded.
In March 2008 South African firm Altech bought a 51 percent stake in KDN.
“It was in the year 2011-12 that we felt stress of ever increasing maintenance cost, high working capital cost and falling bandwidth prices due to ever increasing pressure. It was also the year when KDN decided to focus on its core business of bandwidth whole-selling and close down many retail products that were in various stages of offing (like Wi-Fi, VoIP, IPTV etc),” Atul Chaturvedi – KDN’s Chief Commercial Officer explained
Altech launched a tier 3 data centre in Sameer Business Park last September as Altech committed a $20 million capital investment over the next three years in the data centre.