MultiChoice is considering retrenching despite good financials

Staff Writer | Jun 23, 2019
MultiChoice may retrench over 2,000 employees at its call centres and walk-in services.

Pay TV operator MultiChoice said on Friday 21 June that it planned to start Section 189 consultations over possible retrenchments, which may lead to the retrenchment of over 2,000 employees at its call centres and walk-in services.

If the process did lead to retrenchments, the company said it hoped to minimise the impact, while offering support to those who would be directly affected. The process was expected to last over the next two months.

This comes as the company restructured its business model to keep up with changing trends and the demands of its customers.

Last week saw MultiChoice announce its results for the financial year ended March 2019, which showed that the group generated R50.1 billion in revenue, a 6% increase from the previous financial year. The company’s operating profit rose by 11 percent to R7 billion.

The need to retrench can be considered even though the company is not in financial difficulties. A company may retrench in order to reduce costs or restructure to respond to changes in customer tastes or to become or remain competitive.

 

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