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Gijima is cutting staff under what it is calling a “people optimisation” strategy, with the goal of reducing human capital costs by between 8% and 12%.

The company states that the internal people optimisation strategy is aimed at improving efficiency and reducing its cost base.

“The ICT industry landscape has changed dramatically. ICT spend globally is under pressure and commoditised offerings have become the most price-sensitive,” it says in a statement to shareholders. “At the same time, clients, particularly those in the financial sector, have come under pressure to be even more competitive following global acquisitions.

“For Gijima to adequately respond to these changes, the company will also be streamlining its operations focusing on efficiency, nimbleness, and human resources optimisation. Focus will be on ensuring that Gijima’s cost structures remain relevant to its growth plans, market expectations, and are in line with turnover targets.”

CEO Jonas Bogoshi says the changes in the global market have warranted that Gijima reassess its business operating model and restructure it to make it  relevant.

“Our aim is to enhance our business competitiveness, and that of our valued clients, and this optimisation strategy will enable us to do just that, without compromising our track record of quality service delivery.”

He says the strategy is part of Gijima’s Vision 2025 plan, which it initiated in early 2011, and which aims to enhance Gijima’s competitiveness.

“We are already seeing traction of the plan we have put in place,” says Bogoshi.

As part of the optimisation strategy, Gijima will be streamlining its operations.

“The first phase of the implementation of the new business structure resulted in some role duplication and staff under-utilisation, which the group is now correcting,” according to the statement. “Unfortunately, this will include reducing its human capital costs by between 8% and 12%, depending on the business area. Top talent will be retained across the company`s skills value chain to ensure that Gijima continues its track record of excellent quality service and delivery.”

“The process will be completed by mid-August 2012 while the business restructuring will come into full effect on July 1, 2012.

“We aim to improve our performance and enable the organisation to look for and create new opportunities in the ICT space. We are realigning our service and business offerings to create greater efficiencies and enable the organisation to adapt appropriately to market conditions,” says Bogoshi.