Telecommunications company Cell C has announced a plan to close 128 stores, slightly over 50% of its physical footprint in the country.
The company has recently fallen on tough times with its financials forcing it to change its strategy in ways such as “evolving its business strategy and operating model in order to run a more efficient and competitive business that is aligned to customer needs and behaviours”.
Currently, Cell C runs a total of 240 stores in South Africa and plans of closing down 128 of these stores will leave about 540 people jobless. Almost two months back, the telecoms company began reorganizing itself in a move to reduce its total force of 2500 employees by 40% as it struggled to remain profitable, under the Labour Relations Act (LRA).
Physical to Digital
To counter this latest move, Cell C plans to increase its digital footprint once it executes the store closures in order to serve customers, “new digital ways of engaging and servicing customers will be deployed based on customer insights,” said the telecoms in a statement.
Earlier on, the company had started a restructuring of its top management and senior staff which was completed in May and resulted in 30 officials being declared redundant. This new wave of job cuts is expected to only affect junior management and semi-skilled staff.
Cell C has since the end of July 2020 made available a voluntary severance package to employees who have been affected by the redundancies. “The process is still underway and no final decisions have been taken,” said the company.