About 850 managers to go in MTN South Africa




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mtnSouth African telecommunications giant MTN Group may lay off about 850 managerial staff, according to a trade union .
“We have just received a massive retrenchment notice at MTN,” Reuters quoted Marius Croucamp, spokesman the Solidarity Union, a trade union negotiates on behalf its and attempts to protect workers’ rights.
MTN has expanded rapidly since founded 1994. But Nigeria, Africa’s largest economy has been its largest market, 21.5 percent revenue increase to R27.099 ($2.5 ) reported the half year ended June 30, 2014.
The telecoms has struggled its native South Africa as revenues dropped 7 percent to R19.157 ($1.8 ) at the end the first half the year. Aside a slowed growth path, the telco faces stiff competition at home; its local market is dominated by Vodacom, which holds 50 percent market share. MTN and Cell C account for the remaining half.[eap_ad_2]
According to a February by JSE-listed Blue Label Telecoms, MTN holds 32 percent of the South African telecoms market, dropping 2 percent from 36. Cell C grew its market share by 42 percent from 12 percent to 17 percent.
The Group had during the interim results presentation recently expressed hope of returning MTN South Africa’s EBITDA margin from 33.3 percent to 35 percent. intends to achieve this partly by cost cutting, which said would include headcount reductions.
As at 12:34 GMT on Monday, MTN’s shares were down 1.81 percent at R24,250 ($2,263). (VENTURES AFRICA)[eap_ad_3]