M-Web announced to staff yesterday that 20% of them will be retrenched, according to an anonymous employee of the Internet service provider (ISP).
In a press statement, however, M-Web CEO Antonie Roux refers merely to a "small percentage" of layoffs.
Overall it affects less than 10% of staff - probably about 8%.
Andrew Milne, COO, M-Web`s Connect Division
The statement claims that a combination of factors - including the stability of its network and historic success in educating and informing customers - has seen a reduction in the volume of calls to its call centre. As a result, "M-Web will not be renewing contracts with a small percentage of its staff that are currently employed on a temporary contract basis - primarily from within the call centre."
Andrew Milne, COO of M-Web`s Connect Division, which is responsible for its dial-up and support operations, explains that about 50 people are affected, of which 26 are part-time employees. "About 30% of our staff are always part-time to deal with fluctuations in call volumes."
In addition, several small projects were shut down. He says that the figure of "20%" may be correct for some departments, but "overall it affects less than 10% of staff - probably about 8%."
The M-Web employee, however, describes the mood in the company as harried, as the ISP grapples with how to handle Absa`s surprise free-Internet offer at the same time as it copes with an office move. He describes M-Web`s decision to block non-M-Web dial-up users from accessing its content portal as a "direct response" to Absa`s service.
Milne says that neither the staff cut nor the content restrictions are specifically in response to Absa. "We`ve known for about a year that this is the way we`d go," he says about M-Web`s restriction of content to paying subscribers. And he describes the staff cut as rationalisation that can be ascribed to efficiencies in its operations realised by, for example, the company`s R3.5 million investment in Nortel Symposium skill-based call routing software.
He also plays down reports of low morale, saying: "There are always cycles, always a challenge. If my staff, including myself, isn`t by now expecting the next challenge we wouldn`t be here. We`re ready for it, and I think so is my staff."
Roux also aims to reassure investors in his statement, saying that the changes are part of a set of business principles designed to lead the company to profitability. "We envisage no compromise on member services to which we remain absolutely committed."
Share
