Telkom Kenya has announced a plan to send home 575 employees of the company. The massive lay-off follows Telkom’s decision to form a joint venture with mobile services company Airtel Kenya.
Telkom Kenya and Airtel Networks limited signed an agreement to unite their operations on 8th Feb 2019. The reason behind the joint venture is to create a business with improved efficiency, greater distribution network, and well planned brand presence.
The two telecommunication companies plan to increase their infrastructure investment to hasten their rollout of advanced technologies. Their ultimate goal is to create a formidable competitor for the leading mobile services company Safaricom.
Due to the planned union, Telkom Kenya resolved to discontinue the transferred business. As a result, all workers in the transferred business segment will be sent home. Additionally, the telco plans to lay-off some employees in administrative and supportive roles. The 575 staff members to be laid off form more than half of Telkom’s workforce.
In a public statement, Telkom revealed that they issued a one month notice on 31st July to the affected workers, the Communications Workers Union, and the County Labor Offices as required by law.
Telkom’s CEO Mugo Kibati said that the termination process will be conducted in a fair and transparent manner. The company’s staff will have a thirty-day consultative period to discuss the matter with the telecommunications firm.
Telkom joins the long list of Kenyan companies that have laid off their employees in the recent months.
