Telkom plans in future to cut its staff numbers by 7% to 10% a year, although the telecommunications utility promises to do so in a "socially responsible" manner.
Yesterday the group released its first set of full-year results as a listed company, with headline earnings per share beating analysts` expectations by rising 175% from 314c to 863.6c.
CEO Sizwe Nxasana says Telkom reduced its fixed-line headcount by 8.5% from 35 361 to 32 358 in the year to 31 March 2004, with just 3.6% of losses being involuntary retrenchments. The balance was through voluntary severance and natural attrition. In 2002, staff numbered 39 444.
He says the group has adopted a socially responsible approach to staff cuts, boosted by the Agency for Career Opportunities, an initiative to help employees, often through re-skilling, to be re-employed either internally or externally.
Telkom says it plans to reduce headcount on an annual basis by 7% to 10% a year, including natural attrition.
"This will be largely enabled through the Operational Support Systems initiative, which provides automated solutions to enhance revenue and reduce costs. Already, increased employee productivity has been reflected in growth from 137 to 149 lines per employee."
During the year Telkom, which owns 50% of cellular network operator Vodacom, focused strongly on stemming the loss of fixed-line customers and traffic.
"Both access lines and traffic remained relatively flat on the prior year through aggressive ISDN marketing, reconnection campaigns and deals with property developers to ensure early connection of new customers," says Nxasana.
"The stimulation of traffic remains a priority and further calling packages were launched, supported by extensive fixed-line tariff education." Other initiatives included the rebranding of TelkomDirect, the repositioning of Telkom branches and the closure of non-viable outlets.
It has also aggressively promoted data products to small, medium and micro-enterprises.
Related stories:
Telkom to pay 110c dividend
Vodacom results soar
Share
