Malawi Telecommunications Limited (MTL) is laying off almost half of over 500 workforce this month as a result of the restructuring process that has seen positions consolidated and others eliminated.
The casualties represent about 40 percent of the total workforce. Many of those affected will know their fate this week while others have been communicated to.
In a letter to one of the employees declared redundant, the company explains that the decision to retrench is as a result of a review undertaken to align jobs to the new business strategy.
“As a consequence of this new structure, your job has been affected with the new review …,” the letter reads in part.
Among several changes, MTL has eliminated some jobs from the company structure, reduced the number of jobs for some positions, combined several jobs and, in some cases, created new positions.
MTL conducted a functional review of the business after unbundling of the fibre network and decommissioning of technologies they were relying on. This, insiders say, is what has made the company arrive at the decision to downsize.
MTL public relations officer, Tina Dasi, last week could neither confirm nor deny the development. She asked for more time before she could answer the questions about why so many are being laid off.
Yesterday, Dasi asked for more time again.
MTL is owned by a shareholding of Press Corporation as the majority shareholder with 52.7 percent, Old Mutual with 16.1 percent, Nico Holdings with 9.0 percent, Investment Alliance with 2.2 percent and the Malawi Government holding 20 percent.
It was registered as a limited company in 2000 when the government decided to split the parastatal Malawi Posts and Telecommunications Corporation into two entities, MTL and Malawi Posts Corporation to allow the two to concentrate on their core businesses separately.
In 2005, the government, through the Privatisation Commission, finalised the privatisation of MTL in order to develop telecommunications in the country to allow more Malawians have access to communication services.
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