Telecommunications firm Telkom has announced plans to retrench over 500 employees to accommodate new structure following merger plans with Airtel Networks Kenya Limited.
The merger talks between the two telcos have been going on for a while and earlier this year, the firms signed a binding agreement to combine their respective mobile, enterprise and carrier service businesses in Kenya to operate under a joint venture company to be named Airtel-Telkom.
The company said it will discontinue the transferred business and must terminate the contracts of employees currently deployed in the affected business areas.
In a statement, Telkom CEO Mugo Kibati said, “In accordance with the provisions of Employment Act, we have notified communications workers union and sent out letters to individuals affected giving one month’s notice with effect from July 31.”
“We intend to terminate the employment of approximately 575 of our employees, on account of redundancy, as a result of the transaction,” said Mr. Kibati.
The CEO said that those employees whose lines of business have not been affected will be retained in a “redefine Telkom organization.”
It is expected that the Joint Venture Company, might consider offering employment to some sacked employees “subject to positions being available in the new organisation and those individuals meeting the recruitment criteria.”