Reorganisation threatens jobs

MTN planned to restructure its home market’s enterprise business segment, the company said yesterday, as competition squeezed revenue in its key South African unit. The company, with operations in 22 nations in Africa and the Middle East, said that it had informed employees who were likely to be affected by the reorganisation at a meeting held yesterday. MTN said the restructuring was aimed at strengthening its competitive advantage, but did not say how many staff could be affected. “As part of the process, consultations with all employees were held today (yesterday), in keeping with relevant employment legislation. Employee engagements within MTN Business are expected to continue over the coming weeks,” MTN said. Last year, MTN said it would lay off some of its managers in South Africa where sales had been under pressure following stiff competition from players such as Vodacom and Cell C. MTN is also fighting to retain customers in its biggest market Nigeria, where it is facing an onslaught from other players such as India’s Bharti Airtel. MTN shares gained 0.28 percent at R202.50 on the JSE yesterday. – Reuters