Telkom to lay off 100 workers

January 28, 2010
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, NAIROBI, Kenya Jan 28 – Close to 100 middle-level management workers at Telkom Kenya face the sack in the coming weeks, the firm has announced.

The layoffs come at a time competition in the telecommunication’s sector is heating up and firms bowing to external pressure in an effort of keeping operational costs at a bare minimum.
 
Making the announcement, Telkom Kenya chief executive Mickael Ghossein said several factors such as rising cost of doing business and continued impact of cable vandalism as the main reason for down sizing.

“I can officially say that we have embarked on a restructuring program which will affect about 100 middle management employees,” Mr Ghossein said.

Telkom Kenya Human Resource Manager Mary Nalianya said the move was also geared towards getting employees who were compatible with the company’s business focus.

“We have set a new focus for the company and the downsizing is to get us the right workforce who can take the company forward,” she said. 

She added that no more staff would be sent home during the year.

This is the second major restructuring in two years. In April 2009, the company sent home close to 600 employees.

At the same time, the company is set to invest close to Sh16 billion in 2010 in capital expenditure as it seeks to increase its market share.

Mr Ghossein says the company has invested Sh18 billion between 2008 and 2009.

“We plan to invest the money across all our networks to put Telkom Kenya on a competitive path,” he said.
 
The company, which is the only integrated telecommunications provider has about 1.2 million customers on its GSM network, 250,000 subscribers on its Code Division Multiple Access (CDMA) network and close to 500,000 fixed lines.

The Chief Executive said 2010 would be all about increasing revenue by ensuring it had a superior network.

‘Orange money’, the company’s mobile money transfer service, is also set to be rolled out in the first half of the year.

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