Johannesburg - Telkom, South Africa’s biggest landline operator, is starting a job-reduction process that will affect 554 employees, according to the Solidarity union.
About 300 jobs at the company’s head office will be affected, while 254 more will be transferred to another company, Solidarity Deputy General Secretary Marius Croucamp said in an e-mailed press release on Friday, citing a notice sent to labor unions.
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Telkom, about 40 percent owned by the South African government, is reducing costs and investing in its wireless unit to offset a decline in landline use. The shares gained 1.1 percent to R54.08 as of 10:55 a.m. in Johannesburg, valuing the company at R28 billion ($1.8 billion).
Telkom spokeswoman Jacqui O’Sullivan did not immediately answer a phone call requesting comment.
BLOOMBERG