Airtel Kenya has sent 100 employee packing. The move by the company was interpreted as an attempt to stay afloat at a time when the firm is still struggling to gain meaningful traction in the Safaricom-dominated Kenyan mobile market.
This comes after the latest market data showed as of June last year, Airtel lost 200,000 customers in three months.
Currently, Airtel has about 300 employees. Over the past one year, the company has retrenched over 60 employees in a cost-cutting measure.
“Airtel Kenya is undertaking strategic organisational restructuring to improve efficiencies across functions with an aim to enhance customer experience. This initiative will impact some roles that will be merged or become redundant,” said Airtel in a statement.
In the termination letters, Airtel said sacked workers will be paid salary and allowances of up to February 13, 2017 and they will also be paid unutilised annual leave days accrued to date.
The telco will also give one month notice pay and severance pay equivalent to 15 days’ pay for every completed year of service.
“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, which is ranked as Kenya’s second-biggest mobile operator by subscriber numbers after Safaricom, has in the past stated that it has not made “a single dollar in profit” since its parent company, India’s Bharti Airtel, took over Zain in 2010.
