Cell C launches retrenchment process affecting nearly 40% of staff

Cell C says that 960 of its employees will be impacted by the retrenchment consultation process.
Cell C says that 960 of its employees will be impacted by the retrenchment consultation process.

Mobile operator Cell C has launched a retrenchment consultation process, which would affect 960, or nearly 40%, of its 2 500 staff. 

In a statement, the company said that these discussions are part of a process to restructure its operations to align with a new operating model, this as it has "under performed and generated significant losses" for many years.

Discussions are already underway with its junior management and semi-skilled staff. Earlier this year, a similar process was launched among senior management. The process concluded in May and 30 jobs were affected, it said.

"This current consultation process in terms of Section 189A (2) of the Labour Relations Act advises staff of the possibility of redundancy of certain positions and possible retrenchments. 

"No final decision has been made and the consultation process with affected employees is meant to obtain input for consideration before a final decision is made," the statement read.

The company is also looking at "outplacement opportunities" and a reskilling initiative for affected employees. 

Cell C said it had to review its operating model which had generated inefficiencies and created operational and financial challenges. 

It launched a turnaround strategy in 2019, partly focused on creating operational efficiencies, this involves cost savings, procurement cuts, a year-long hiring freeze and a review and discontinuation in certain product offerings.

The company had defaulted on interest payments for a $184m loan (about R2.7bn) which was due in December 2019.

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