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Johannesburg - More than 300 managers at South African fixed-line operator Telkom [JSE:TKG] have left the company voluntarily as part of a restructuring process, the Solidarity union said on Thursday.
The company is slashing jobs from a management layer of 2 650, saying it aims to become more agile in a competitive environment. Most of those remaining from that total have been placed in new positions, but 104 do not have the skills needed for 168 positions yet to be filled.
Telkom had said on October 14 it would cut a number of management posts by the end of the month, though it did not say at the time how many would go in its drive to bring down costs by R1bn ($91m) annually for the next five years.
The redundancies were first signalled by Telkom in July as the company looks to reduce its operating costs and improve efficiencies.
State-owned enterprises like Eskom and SAA, which have for years relied on government bailouts to remain afloat, are facing government pressure to cut their operating budgets.
Telkom managers yet to find a new position might still lose their jobs, Solidarity spokesperson Marius Croucamp said. "They are still trying to match that group of 104 within the 168 posts still available in the new structure. And those that cannot be reasonably matched will be forcibly retrenched."
Telkom shares, which have doubled in value so far this year as a result of a turnaround strategy being implemented at the company, were up nearly 2.3% at R55.74 by 12:27 GMT.
Last week, Telkom said staff had suggested voluntary severance and retirement options instead of forced lay offs.
Staff who have not been appointed to a new role by the end of September would be issued with termination notices and they would have to leave at the end of October, it said.
"Simply placing people into positions, regardless of their competencies, qualification or experience just to avoid their retrenchment, would be a huge disservice to the business," Telkom said in its 14 October statement.
The government holds 39.76% of Telkom and an indirect 10.61% through the government employee pension fund manager, the Public Investment Corporation.
Finance Minister Nhlanhla Nene said on Wednesday the government was aiming to improve governance in other public corporations such as South African Airways and the Post Office, and would sell some non-strategic assets to finance its power utility.
His Public Enterprises counterpart said on Thursday the country would consider a strategic partner for struggling flag carrier South African Airlines.
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