Sipho Maseko, who took over as the CEO of embattled telecommunications group Telkom in April, said on Friday that the JSE-listed group required "a complete transformation" and that "tough decisions will have to be made".
"Our results reaffirm the need to take bold action to turn around the Group's financial trajectory," Maseko said in a statement accompanying its financial year-end results where Telkom reported a R11.7 billion loss. "Despite the current financial performance, there is significant opportunity for Telkom to build a profitable and sustainable business that is able to support South Africa's economic development.
"Success will require a complete transformation of the Group," he added. "Tough decisions will have to be made, particularly regarding costs. In this regard our immediate focus will be reviewing our staff numbers, optimising our property portfolio and decommissioning of unprofitable services."
Telkom is currently undertaking a full strategic review, focusing on short and medium-term interventions to unlock value.
"It is critical for us to put our customers at the centre of what we do to improve our service delivery and enhance their experience," Maseko said. "The upgrade of Telkom's network, which will accelerate over the medium-term, is essential to achieve this objective."
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