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Fibre operator DFA to retrench employees

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Andries Delport, CEO of Dark Fibre Africa.
Andries Delport, CEO of Dark Fibre Africa.

Remgro-controlled Dark Fibre Africa (DFA) has become the latest technology company to announce plans to retrench employees in 2022.

In a statement, DFA says it must continue to evolve its business operations to ensure it is able to enhance its competitive ability, focus on its core capabilities and optimise its organisational structure.

DFA has a national metro fibre network spanning 13 000km and 37 000 connected circuits.

The company did not reveal how many employees will be impacted by the job cuts.

According to the fibre operator, evolving the business will enable it to continue to deliver high-speed connectivity infrastructure in an efficient and competitive manner to the market.

It explains this evolution towards a leaner and more agile organisation, which is significantly more efficient, has been largely dictated by the ongoing impact of COVID-19, a contraction in economic growth and the addressable market for services, as well as inflationary cost pressures, coupled with aggressive price competition in the market.

The move to retrench employees comes as Vodacom Group in November last year acquired a co-controlling equity stake in Remgro unit Community Investment Ventures Holdings’ (CIVH’s) fibre assets.

CIVH operates electronic communications infrastructure through its subsidiaries and Vumatel.

“We will continue to review our processes and efficiency levels and align organisational structure to ensure increased network expansion opportunities. This will allow us to meet the changing needs of our clients who operate in a highly dynamic and competitive environment,” says Andries Delport, CEO of DFA.

Considering these factors, DFA will be rationalising its headcount complement, says the company.

“We will be engaging and consulting with the affected employees on a range of restructuring options, that are expected to be concluded by the end of March 2022.”

Last week, ITWeb reported that local ICT services firm Gijima is retrenching, with 300 employees likely to be affected.

Gijima said the move was informed by the uncertainty and prolonged effects of the COVID-19 pandemic, which has had major economic consequences on businesses globally.

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