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Sentech senior managers face axe

Johannesburg, 26 Jan 2007

Government signal provider Sentech has begun a restructuring process that will see it streamline its operations and may lead to job cuts at managerial and executive level.

Sentech media relations manager Pranill Ramchander said this morning the key reason for the restructuring exercise is to remove the overlap of certain departments' functions, as well as the duties of certain key staff members. He points out that Sentech currently employs two finance executives, for instance.

It is understood the retrenchments will affect six executive heads. Ramchander would not say exactly which divisions within the company would be affected.

"Letters have been written to individuals whose positions have become redundant. We are in consultation with them in terms of exploring other opportunities within Sentech, before retrenchment is considered," he says.

Business as usual

The process began this week, and Ramchander notes it will not affect Sentech's normal business processes or units, as there will not be any termination of services or products.

While cost-saving is not the key driver for the restructuring, money saved from the termination of positions will be reinvested in current operations. However, Ramchander says the amount of money involved is not substantial.

He stresses the streamlining exercise is not about downsizing, or cutting costs. In fact, Sentech has been advertising available positions in certain divisions.

"This is more about streamlining assets and processes, and making optimum use of the assets we have," Ramchander explains.

Following the extension of her contract for another two years, Sentech CEO Dr Sebiletso Mokone-Matabane, in December last year, hinted at strengthening the company's position in the market.

"I am confident of maintaining Sentech's position as an industry leader and consolidating our strengths with our committed team of professionals, at all levels," she said.

It is unclear, at this stage, when the job cuts will commence.

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