Cell C plans to cut jobs by 13 % - CNBC Africa

Cell C plans to cut jobs by 13 %

Southern Africa

by Trust Matsilele 0

South Africa's third largest mobile operator Cell C plans to cut jobs by 13 per cent. PHOTOS: Destiny Connect

The company said it was still in the process of consultations in respect to the impending retrenchments.

The mobile operator said the move was as a result of revised revenue estimates likely to decline partly due to termination rates.

(WATCH VIDEOCell C dissects future financial plan)

“CELL C may reduce its workforce by 13 per cent amid challenges to a fee structure that could hurt its revenue,” read the company statement.

The mobile telecommunications company last September protested to the regulator after the Independent Communications Authority of SA (Icasa) announced the new termination rates.

Termination rates are the charges which one telecommunications operator charges to another for terminating calls on its network.

The mobile operator has in the past communicated its displeasure with Icasa saying the regulator’s approach had failed to promote competition in a duopolistic market.

(WATCH VIDEOCell C slashes call rates to 66c)

 “We wish to confirm that the process followed is in line with the Labour Relations Act. Furthermore the company is acting responsibly and will do everything in its power to support those affected by this process.” 

Meanwhile some media outlets have reported trade unions such as Solidarity gearing to represent its members who might be affected by the restructuring exercise.