MTN Reveals Better than Expected Job Cuts Numbers in South Africa
MTN Group has announced its plans to lay off around half of its 850 managers in South Africa; a number that is actually considerably below the number of job cuts predicted by union officials
Original projections by South Africa’s Solidarity Union, which largely represents skilled workers, suggested that the continent’s largest telecoms company would be looking ti cut closer to 850 managerial jobs as a consequence of its recent dip in the market.
For years, the company has held the title of industry leader, due to its incomparable saturation in the key economies of South Africa and Nigeria, but it would seem that market competition in the former has diminished the company’s stronghold.
South Africa is seen as a gateway to Africa, especially for international companies moving into continental markets, and it is here where MTN has been hit hardest, with the company’s revenue failing seven percent in the first half of 2014, while margins also declined.
MTN South Africa’s market share dropped by almost three percentage points to 31.9 percent as a result of the growing number of market rivals, both locally and internationally.
All of this indicates that the reduction in job losses against forecasts is actually a positive sign for MTN, whose subscriber numbers also continue to increase despite the competitive market.