Econet retrenches 100 as revenue declines


Zimbabwe’s largest telecoms operator by subscribers Econet Wireless has retrenched 100 employees as it seeks to streamline operations in view of declining revenues.

Econet chief executive officer Mr Douglas Mboweni said in a statement yesterday that a POTRAZ regulatory directive had resulted in the company’s revenues declining.

The group, however, said it is contesting the POTRAZ decision in court.

Econet said it undertook a comprehensive review of its staffing levels resulting in these retrenchments, bringing the total number of people whose employment contracts have been terminated to over 130 employees, since the beginning of the year.

Mr Mboweni advised that the staff affected had been informed of the decision. In line with the cost rationalisation effort, Steward Bank terminated contracts of 39 employees earlier in the year.

He added that the company had complied fully with all the labour laws with respect to retrenchment.

And that the company will award shares to staff who accept the retrenchment offer.

“The shares are not part of the retrenchment package but are an incentive for speedy closure of the retrenchment process that will reward long service with the company.

“This award will only be available to those employees who have been identified for retrenchment, who voluntarily agree to abide by the process and time-frames outlined in the retrenchment process.

“The award of shares will be done after the retrenchment process is completed,” said Mr Mboweni.

The telecoms giant undertook a number of cost-cutting measures earlier in the year, and in August, Mr Mboweni announced that the firm had saved up to $70 million through its various cost-cutting initiatives.

In the full year to February 2015, Econet’s after-tax profit was $70,2 million, down from $119,4 million in 2014, while revenue, at $746,2 million, was nearly one percent lower than $752,7 million previously.— BH24.