BCX to retrench about 700 employees
Telkom subsidiary cites continued weak performance due to difficult trading conditions
Telkom subsidiary BCX will retrench about 700 employees following weak financial performance. The technology firm’s CEO, Jonas Bogoshi, said that the trading conditions were still difficult. BCX had come under pressure when large enterprises in both the public and private sectors held off on spending on ICT because of the slowing economy. About 35% of BCX’s revenue is from the public sector.
“Our business has been severely impacted by the technical recession. We expect the reduction in IT spend that we have seen to continue as our customers look to find ways to protect their own profitability,” he said. Large and medium-sized entities represent 37% and 26% of BCX revenue, respectively. BCX said on Thursday it entered a formal consultation with its trade unions and the Commission for Conciliation, Mediation and Arbitration (CCMA) on the possible retrenchment of about 10% of its 7,489 employees. News that the enterprise focused BCX was seriously looking at reducing its head coun...
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