MTN South Africa may lay off about 850 managerial staff, according to a trade union official.
“We have just received a massive retrenchment notice at MTN,” Reuters quoted Marius Croucamp, spokesman of the Solidarity Union, a trade union that negotiates on behalf of its members and attempts to protect workers’ rights.
According to Reuters, despite the company’s growth over the last twenty years, it has been facing competition from Vodacom which dominates the market.
MTN has expanded rapidly since it was founded in 1994. But Nigeria, Africa’s largest economy has been its largest market, with 21.5 percent revenue increase to R27.099 billion ($2.5 billion) reported in the half year ended June 30, 2014.
The telecoms company has struggled in its native South Africa as revenues dropped 7 percent to R19.157 billion ($1.8 billion) at the end of the first half of the year. Aside a slowed growth path, the telco faces stiff competition at home; its local market is dominated by Vodacom, which holds over 50 percent market share. MTN and Cell C account for the remaining half.
A spokeswoman from MTN is to issue a statement on the matter shortly.
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