MTN To Lay Off 578 workers | Bizness Watch

MTN To Lay Off 578 workers

MTN, Africa’s biggest telecommunications provider, plans to issue dismissal notices by May 1 to up to 578 people at its South African enterprise business unit. The network provider has been involved in back-and-forth negotiations with the workers it plans to lay off and the workers union since last year. According to Reuters news agency, Marius Croucamp, spokesman for the Solidarity union, said consultations begun on Jan. 21 and that MTN was offering two weeks severance pay for each year of service. The South African company had last week revealed plans to restructure its business in a bid to strengthen competitive advantage. 476 employees have lost their jobs at the company in the last 12 months, Croucamp said. Struggles at home MTN has struggled in its home market of South Africa, its main success came from Nigeria, Africa’s largest economy. However, the Nigerian telecom market has gotten increasingly tighter of late with rivals competing neck-in-neck. Also, the country’s currency crisis, caused by the fall in global oil prices, has chewed off chunks of value from the company’s revenue. In a stint of good news today, the Johannesburg-listed operator’s shares were up 1.7 percent at 1132 GMT, outpacing a 1 percent rise by the bourse’s blue-chip index. Total Views: 371 ,

-Venture Africa

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