Telkom to lay off 500 employees in cost cutting measures

October 26, 2018 (4 weeks ago)
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NAIROBI, Kenya, Oct 26 – Telkom Kenya has announced a restructuring plan that will see 500 employees leave the telecom company.

The firm says the move is aimed at making the telco gain market share and become second in the market through cost restructuring.

“To enable Telkom to invest more it requires restructuring its business, and as a result, this will impact the current and long-term needs of its workforce. This restructuring will enable Telkom to not only invest in its business but more importantly in its people,” the firm says in a statement.

Telkom has invested Sh14 billion in network expansion, 4G services and its Mobile Financial Service Platform T-kash, since Helios bought out Orange to take control of the company in 2016.

Telkom is 60 per cent owned by Helios Investment Partners, with the remaining stake held by Kenyans through the Government of Kenya.

“Telkom, being in a fast-evolving sector is adapting to market dynamics and changing consumer demands, to ensure that it delivers relevant and competitive products and services. This will also ensure that Telkom becomes a stronger player in the market and grows its relationship with its business partners,” the firm noted.

According to the latest Statistics from the Communications Authority of Kenya for the period between April and June 2018, Telkom Kenya gained 0.22 percentage points to end the quarter at 8.8 percent market share in the mobile phone connections, behind Safaricom at 65.4 percent and Airtel at 21.4 percent.

Meanwhile, Airtel Africa secured 1.25 billion dollars capital injection from six investors through a primary equity issuance.

The proceeds will be used to reduce Airtel Africa’s existing debt of 5 billion dollars and to grow its African operations including Kenya.

The transaction will not involve any sale of shares by existing shareholders.

Bharti Airtel Africa Chief Executive Raghunath Mandava said the transaction will help the operator boost its capacity to upgrade networks, expand coverage in different markets and achieve rapid growth of Airtel Money.

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