MTN plans to cut costs ‘will affect 847 managers’

2014-08-25 16:19

MTN may cut as much as 14% of its staff in South Africa to address declining market share and revenue.

MTN wrote to employees in its domestic market on Friday to say that 847 managers will be affected by plans to cut spending, Solidarity union spokesperson Marius Croucamp said today.

The company employs 6 196 people in South Africa, according to the union.

“MTN SA will continue to review its cost structures, including employee costs, to ensure better alignment with revenue performance,” Themba Nyathi, MTN South Africa’s chief human resource officer, said in an e-mailed response to questions.

“MTN SA has begun a process of internal staff consultations on a proposed organisational restructuring.”

The company declined to comment on the number of jobs that would be affected.

MTN has overhauled senior management in its fastest growing markets as it seeks to increase smartphone penetration and boost data revenue outside South Africa, where sales are under pressure from competitors and regulators.

The Independent Communications Authority of South Africa reduced the amount MTN can charge smaller operators to use its network earlier this year, affecting revenue.

MTN’s market share in South Africa declined 2.7 percentage points to 31.9% in the six months through June. The company operates in 22 countries in Africa and the Middle East, including Syria and Iran.

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