Orange Kenya to lay off 500 workers

News General Kenya 18 DEC 2015
Orange Kenya to lay off 500 workers
Orange Kenya announced that 500 workers could lose their jobs in a restructuring plan. In the statutory notification to the Ministry of Labour, Orange Kenya indicated that the restructuring, intended for implementation in the first quarter of 2016, will affect about 500 of its 1,600-strong workforce. Orange Kenya has also notified the Communication Workers Union of Kenya (COWU) of the planned exercise. 

The plan approved by the company's board is a result of a KES 1 billion investment in technology and innovation that has transformed the company's operations within the last three years. Following its transition into a fully-integrated telecommunications service provider, Orange Kenya decommissioned obsolete infrastructure that was no longer in line with its growth strategy. Orange said it arrived at the decision after a thorough review of the business's product and solution offering as well as the infrastructure supporting the company's network, with the long-term view of ensuring viability and further improving the quality of service to its customers. This exercise has changed its entire business outlook and infrastructure, impacting the required size of its workforce. 

The rationalization plan comes as Orange is in talks to sell its 70 percent stake in Orange Kenya to investment fund Helios. The Kenya Treasury holds the other 30 percent of Kenya's third-largest operator. 


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