Cell C: Job cuts, challenge new fee structure

CELL C, South Africa’s third-largest mobile phone operator, may reduce its workforce by 13 percent amid challenges to a fee structure that could hurt its revenue. The proposed cuts may affect as many as 190 employees and is a result of a restructuring process, it said on Friday. Cell C employs 1 458 people, according to labour union Solidarity. Cell C “is in the process of consultation in respect of possible retrenchments consequent to a restructuring in certain areas,” said Cell C. “This process is aimed at streamlining the business, enhancing efficiencies and avoiding duplication of functions.” South Africa’s communications regulator this month scaled back a planned reduction in the cost of calling other mobile networks after opposition from the biggest operators, Vodacom Group and MTN Group. The fees will probably be challenged legally by Cell C, said chief executive Jose dos Santos. Cell C will finalise the job reduction process by the end of January, Solidarity said. – Bloomberg