Telkom Kenya Imposes Recruitment Freeze to Bring Down Wage Bill
Published on: 27th Feb 2014
Note -- this news article is more than a year old.
Struggling Telkom Kenya has imposed a recruitment freeze to try and hold down its wage bill as the company looks at cost cutting measure to turn its performance around.
The former state-monopoly employs 1,700 staff and has a wage bill that eats into 22 percent of its revenue, which is about 7 percent higher than industry averages.
That is even after the company laid off a staggering 16,000 staff over the past 7 years.
The company's CEO, Mickael Ghossein said that staff leaving the company will only be replaced on an as-needs basis and each new appointment will need to be approved by senior management.
"We have frozen our recruitment for new employees as our head count does not match our revenue," Mr Ghossein said.
Telkom Kenya is majority owned by France's Orange, with 70% stake. The rest is owned by the government.