According to Kenyan Wallstreet, Telkom Kenya has announced plans to lay off 575 employees in its establishment. The massive lay offs are as a result of the telecommunications company’s decision to enter into a joint venture with its fellow mobile services company Airtel Kenya.
On the 8th of February 2019, Telkom Kenya and Airtel Networks limited signed an agreement to unite their operations.
The agreement came to life as a result of a desire by both companies to create a business with a greater distribution network, improved efficiency, and a very well planned brand presence.
In order to hasten their release of advanced technologies, the two telecommunication companies plan to increase their infrastructure investment with the ultimate goal being the creation of a formidable competitor for Kenya’s leading mobile services company Safaricom.
As a result of the planned merger, Telkom Kenya will be discontinuing its transferred business. All workers in the transferred business branch of Telkom Kenya, will be laid off.
The telecommunications company also plans to lay off some of its employees occupying administrative and supportive roles.
The 575 staff members to be laid off reportedly constitute more than half of Telkom Kenya’s entire workforce.
In a public statement, Telkom Kenya in a public statement, made it known that on the 31st of July 2019, a one month notice was issued to the affected workers, the Communications Workers Union, and the County Labor Offices as required by Kenyan law.
CEO of Telkom Kenya; Mugo Kibati, stated that the termination process will be conducted in a fair and transparent manner and that the company’s staff will have a 30 day consultative period to discuss with the telecommunications firm.
