MTN is set to retrench about 8% of its workforce – more than 400 people – ahead of the festive season.
According to a report in The Times this morning, the cellular network operator is to let 403 permanent staff members go from 1 December, while it may also terminate up to 70% of its non-permanent workers as well.
The report says the HR department sent an internal e-mail to staff members on Friday, apprising them of the coming retrenchments and inviting people to apply for voluntary packages.
Last month, MTN recorded "disappointing negative movement" in its South African subscriber base for the latest quarter, seeing a significant decline from 17,23-million local subscribers to 16,41-million as at 30 September.
It blames the drop on the new RICA (Regulation of Interception of Communications and Provision of Communication-Related Information Act). Analysts believe the challenges of implementing RICA are so severe that MTN will be forced to revise its current expectation of zero growth in the South African market downwards.