Troubled wireless operator Cell C plans to close 128 stores and retrench 546 employees, it said on Friday. Photo: File
Troubled wireless operator Cell C plans to close 128 stores and retrench 546 employees, it said on Friday. Photo: File

Cell C to retrench 546 staff, close 128 stores

By Dineo Faku Time of article published Aug 24, 2020

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JOHANNESBURG - Troubled wireless operator Cell C plans to close 128 stores and retrench 546 employees, it said on Friday.

Cell C, South Africa’s third-biggest mobile operator, said that the retail environment had changed and this had been fast-tracked by the impact of Covid-19 and the evolving purchasing habits of consumers.

The group said that its Section 189 process had been expanded to include the retail footprint.

“It is anticipated that 128 stores will be closed over a period of time and this will affect 546 positions,” it said, adding that new digital ways of engaging and servicing customers would be deployed based on customer insights.

“The consultation process commenced on July 30, 2020, and the company has subsequently made a voluntary severance package offer. The process is still under way and no final decisions have been taken,” said Cell C.

In June Cell C proposed the reduction of up to 40 percent of its work force citing operational requirements, saying 960 out of 2500 staff members might be affected by the restructuring of the business.

Earlier this month Blue Label notified its shareholders that troubled Cell C had defaulted on its loans.

Blue Label which holds 45 percent of Cell C, said the country’s third-largest mobile telecoms provider had failed to make payments of capital on its R3.16 billion note.

BUSINESS REPORT

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