Cell C denies it is undergoing a shake-up, despite the appointment of a new chairman, chief corporate officer and the retrenchment of 20 staff members.
This week, the third mobile operator announced the appointment of Simon Duffy, former president and CEO of ntl Incorporated, as chairman with immediate effect.
Duffy, who is also a non-executive director of Oger Telecom, takes over from Talaat Laham, who leaves his position as chairman to pursue other opportunities within Oger Telecom. Cell C is also retrenching 20 of its 2 634 staff members.
Additionally, Zeona Motshabi, former CEO of advertising agency Lobedu Burnett and chairman of the Lobedu Group, rejoined Cell C as its chief corporate officer.
Motshabi, whose responsibilities include overseeing the corporate communications and legal and regulatory affairs divisions, worked for Cell C as its head of corporate communications at its inception before joining Lobedu Burnett.
Out of proportion
However, Cell C head of corporate communications Vanashree Pillay says there is no shake-up under way at the company, and these events just happen to take place at the same time.
Pillay says Laham, who will also relinquish his position as chairman of Virgin Mobile SA, is leaving SA to take up business opportunities that are closer to his family.
She also denies Cell C's failure to make a profit since its inception influenced the decision to retrench staff. The company's performance is in line with how third cellular operators have performed around the world, she says. Additionally, the board met in London this week and is happy with the company's performance, she explains.
Meanwhile, Pillay also claims media reports of retrenchments at Cell C have been blown out of proportion. "It's 20 positions out of 2 634 that are being affected. That is 0.1% of staff, not 1%, as has been reported."
She says the exercise is purely for realignment of resources. "It's normal business practice and nothing more."
Realignment and focus
At its six-month financial report meeting in August, Cell C CEO Jeffrey Hedberg said the company needed to improve its focus, speed and efficiency in order to grow in a market that is already dominated by two powerful players with deep pockets.
He said the company lost its way by trying to be everything to everyone, everywhere. There was also a lack of consistency in strategy, with the result that Cell C's resources were not used to effect maximum revenue growth, he noted.
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