The collapse of the planned Telkom-Airtel merger has provided relief to employees who were set to lose their jobs if the merger would have been successful.
Hundreds of employees who were on the firing line had the marriage been consummated can now rest easy knowing their jobs are safe. Telkom Chief Executive Officer Mugo Kibati said that the notice of redundancy some employees had been issued was withdrawn.
“Consequently, the notice of redundancy issued by the company on 31st July 2019 is withdrawn and the earlier envisaged redundancies no longer apply,” Mr Kibati said.
The Telkom top man further said that the company resulted to adopting an alternative strategic direction and will no longer be pursuing the proposed joint venture transaction with Airtel Networks Kenya Limited.
Telkom had already laid off 575 of its staff instructing them to reapply to the new outfit that would have been known as Airtel-Telkom.
The Telkom CEO said that the company had pursued all options trying to make the merger happen.
“Considering the challenges experienced in getting all the approvals required to complete the transaction, the company has simultaneously been evaluating alternative strategic options to strengthen its position and offering, within the market, as a genuine alternative for the consumer, enabling us to entrench our current brand as Kenya’s preferred data network service provider,” he said.
The health crisis, he says, has made both businesses as well as individuals, acutely aware of the need to review direction, with respect to how “we do things, and the need to step-up.”
The merger discussions which had started in February 2019 were ended unsuccessfully yesterday.
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