Mobile telecommunications operator MTN South Africa (SA) on Monday announced that it would be reducing its workforce, and about 403 permanent employees could be affected by March 2010, while the number of temporary employees would also be reduced, owing to the decline in the economic environment.

The 403 members of permanent staff equated to about 7% of MTN SA’s 4 679 permanent employees. MTN SA added that it would try to limit the number of jobs affected.

“In light of greater efficiencies that are being achieved, together with the decline in the customer base, it is foreseeable that fewer resources will be required in the near future,” stated MTN SA.

Since some 3 000 people were supplied to MTN by temporary employment services, these numbers would also be reduced during 2010.

In addition to the reductions in its work force, MTN SA said that it was re-engineering its business in response to an outlook of lower growth because of the negative impact of the global recession on consumer spending and the Regulation of Interception of Communications and Provision of Communication-Related Information Act (Rica) compliance issues.

In October, MTN reported that its South African subscribers had declined by about 800 000. In other regions where the company operates, the company continued to see growth in subscriber numbers.

The re-engineering process and initiatives to improve the business, include: business process re-engineering; the centralisation of support centres and services; the provision of franchise opportunities on selected MTN SA outlets; increased innovation in all segments of the MTN SA value chain; the reduction of costs and the curtailing of unnecessary expenditure throughout all levels in the company; an increased and targeted focus on sales and marketing strategies; and, delivery of a robust, quality network to MTN SA’s customers to retain the existing customer base.

“To mitigate the effects of possible job losses, a proper consultative route - firstly to avoid retrenchments and redundancies and secondly to mitigate its adverse effects - will be followed in line with legal requirements,” said the company.

MTN SA further explained that severance of two weeks pay for each completed year of service was payable, and if retrenchments were inevitable, affected staff would be given time off to seek alternative employment in advance of working their notice periods.