Executive resignations and the high number of “ordinary” employees choosing to accept voluntary retrenchment packages currently on offer have left remaining Neotel employees “stunned and scared”.
Yesterday afternoon, the company again told employees that at least one person from its executive management team, and another in senior management, had chosen to take the voluntary retrenchment package that forms part of Neotel's realignment strategy.
Several insiders have confirmed that chief marketing officer Jacky Humphries' completed her employment with the organisation yesterday.
Another influential figure exiting is Mukul Sharma, right-hand man for Neotel's outgoing CEO and MD Ajay Pandey. This announcement surprised staffers, who believed Sharma would stay at the telecoms operator to smooth the transition between Pandey and incoming CEO and MD Sunil Joshi. Like Pandey, Sharma is believed to be returning to India; however, it is unknown whether he has a position waiting for him.
This morning, TechCentral reported that Siphiwe Ndwalaza, Neotel's HR managing executive, had also selected a retrenchment package. ITWeb was unable to confirm this with its sources or Neotel.
Cashing in
This news follows hot on the heels of last week's confirmation that Pandey would return to India when his contract expires in March. Shortly before that, Wandile Zote, long-time suspended head of corporate communications, also resigned, reveal sources close to the marketing department.
Neotel employees say they are equally concerned about the number of former Transtel employees racing to accept the voluntary retrenchment package. At least 60 employees from what is now called Neotel Business Support Services have confirmed this choice with management, say insiders.
“Some of the Transtel employees have 30-year employment histories. When you consider they will get two weeks' pay for every completed year of service - including their time with Transtel - you start to get an idea of the numbers being thrown around. So far, estimates place the cost of packages confirmed as taken at around R200 million,” said one insider.
Neotel's ability to continue as a going concern has been questioned by auditor Deloitte & Touche. The operator continues to deliver escalating losses. Additionally, its funding contracts are reaching maturity and placing financial pressure on the company.
Neotel declined to comment.
Share
