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Jonas Bogoshi, CEO of BCX
Telkom owned IT The services company BCX has started a section 189 process under the Labor Relations Act that will see more layoffs at the company.
The implementation of a new business model will imply structural changes in the business, BCX said in a statement Thursday afternoon. BCX last went through a major downsizing program in late 2018.
“Due to the implementation of the new operating model as a result of changing market conditions, structural changes were inevitable. BCX delivered the section 189 notice to the unions and the CCMA in accordance with the Labor Relations Act this morning, ”he said.
Chief Executive Officer Jonas Bogoshi said in the statement that “it is not an easy decision for any management team to make and it is never made as a front-line decision. Several measures were implemented to try to mitigate this, ”he said.
Despite cost-cutting measures, a reduction in discretionary spending and “measures to increase business efficiency” by “reducing business complexity,” staff cuts are still necessary, he added.
“These measures could not insulate us from the rapidly changing ICT landscape, changes in customer demand, and the devastating impact of Covid-19.”
“Immense pressure”
BCX informed employees of the decision in a meeting Thursday. “Our top priority is supporting our employees over the next several months as we go through this process together,” said Bogoshi. BCX has not said how many employees are likely to be laid off through this process; TechCentral has asked the company to clarify this.
“Although BCX had considered its strategic approach earlier in the year, Covid-19 created immense financial pressure on verticals important to its business, forcing it to review its position. Covid-19 has had disastrous consequences for our economy and its impact on our customers has been substantial, “said Bogoshi.
He said that customer expectations were “changing rapidly before Covid-19.” However, the financial constraints experienced as a result of the lockdown became apparent.
“BCX had identified the inability of customers to meet financial responsibilities, had received more requests for payment options, had identified a reduction in IT spending from customers, and a re-prioritization of business requirements as some of the challenges. . This created further pressure on BCX’s margins and on our ability to generate revenue. “- © 2020 NewsCentral Media
