MTN SA to cut 403 jobs

MTNKarel_Pienaar.jpgMTN SA plans to reduce its permanent and temporary workforce as a result of the decline in the economic environment, starting December 1. Approximately 403 permanent employees may be affected towards the end of March next year, which comprises about 7% of MTN SA’s 4 679 permanent employees.

MTN SA will also be reducing the number of temporary employees in its service during 2010. The company expects to save as much as 170 million rand ($23 million) a year after cutting 7 percent of its permanent workforce and about half its temporary workers, Human Resources Director Themba Nyathi said.

The Times reports that job looses will include 120 staffers from MTN service centres, 71 from customer operations, 70 from distribution, 40 to 50 from finance, 41 from corporate sales, 21 and 20 from human resources and marketing and 10 from the technology department will lose jobs

According to a statement released by the company, severance of two weeks’ pay for each completed year of service is payable and if retrenchments are inevitable, affected staff will be given time off to seek alternative employment well in advance of working their notice periods.

Counselling, staff support and assistance will be made available by the Human Resources Department through ICAS, registered with the company for such a purpose. Re-employment agreements will be entered into for a period of six months.

Currently approximately 3 000 people are supplied to MTN by temporary employment services, these numbers would also be reduced during 2010.

In addition to the reductions in its workforce, MTN SA is re-engineering its business in response to an outlook of lower growth due to the negative impact of the global recession on consumer spending and RICA compliance issues.

MTN fell 1.9 percent to 117.55 rand at 3:34 p.m. on the JSE.