Mobile operator fires half of its employees as revenues shrink
Airtel Kenya has fired half of its employees as the mobile company struggles to keep afloat in the highly competitive market. The company yesterday announced that about 150 staff were being sacked. The company’s HR department, led Susan Onyach, had held one on one meetings with those targeted for sacking, who were then given a one month notice.
According to letters sent to the employees, the workers have been rendered redundant and given only a month of employment. The affected employees will go home with final dues of Salary and allowances of up to February 13, 2017, unutilized leave days accrued to date, one month notice pay and severance pay equivalent to 15 days pay for every completed year of service.
Airtel Kenya is undertaking strategic organizational restructuring to improve efficiency across functions with an aim to enhance customer experience. This initiative will impact some roles that will be merged or become redundant, the company said in a statement.
“As a responsible employer, Airtel is sensitive towards the impacted employees and is committed towards minimizing the impact of this initiative,” said CEO Adil El Youssefi. “To assist the affected staff members during the transition, the Company will compensate the employees over and above what is prescribed as per the prevailing laws.”
Airtel Kenya is also working with a leading talent search firm to offer job search services, and provide the necessary training required to find new opportunities. The company will bear the full cost of this support service.
‘Airtel remains committed to the Kenyan market and will continue to invest in order to drive innovation, enhance network quality and customer service delivery.’
Kenya’s tough telecommunication industry has proved difficult for Airtel which, for instance, only makes Ksh9 in every Ksh100, while Safaricom makes a Ksh88 of the revenue share. Airtel Money has had to battle out with Safaricom’s M-PESA which commands over 95 percent of all mobile money transactions in the country.
Airtel has often accused Safaricom of monopolistic tendencies. “The problem is that the dominant player is making all the profits which puts Airtel and other small players in a very difficult situation as it becomes hard to sustain ourselves. The dominant player, therefore continue to get stronger as they have the ability to invest more into their network,” Yousefi says.
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The Kenya telecoms market has been hostile to other players too. In five years, Airtel has lost over Ksh50 billion in the Kenyan market. In 2014, Yu Mobile ceased operations, selling off its assets and subscribers to its competitors, Airtel and Safaricom for around $100 million from its parent company, the Indian group Essar.
The deal saw Airtel take over Yu’s 2.7 million connections, while Safaricom took control of Yu’s network. France’s Orange last year sold its 70 per cent stake in Telkom Kenya to Pan-Africa-focused equity fund, Helios Investment Partners.
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