The newest is that Cell C plans to close about 128 of its retail stores while cutting as much as 546 jobs as part of it’s strategies to reduce expenses. The network company was said to have told MyBroadBand that it has expanded its Section 189 retrenchment process which will include its retail store numbering about 240 in total.
“Part of Cell C’s turnaround strategy includes 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,” Cell C said.
“It is anticipated that 128 stores will be closed over a period of time and this will affect 546 positions.”
This retrenchment consultation process started way back in 30th of July 2020 and the company has subsequently made a voluntary severance package offer in order to impact its employees. “The process is still underway and no final decisions have been taken,” Cell C said.
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The section 189 process was earlier announced back in June when the company indicated a total of 960 jobs within it’s junior management as well as semi-skilled staff to be among those that would be affected by the move.
This was to be followed with a restructuring of its senior management earlier back in 2020 which saw another 30 employees retrenched. One of the issue with Cell C is based on the bad impact of the COVID-19 on the business model which had affected retail environment and purchasing habit of consumers.
It will therefore be working on “new digital ways of engaging and servicing customers based on customer insights”.
“Much like banks are moving away from brick and mortar branches, Cell C is embracing digital solutions and driving digital inclusion by leveraging collaborations and partnerships and moving closer to its vision to be a customer champion with innovative service offerings,” Cell C said.
Meanwhile the company earlier this month announced that it was unable to make debt repayments which caused a lot of concerns among the industry players over the future of the company.
Cell C defaulted on the payment of capital on its $184-million note which was due on 2 August 2020. The company further defaulted on interest and capital repayments on loan facilities with Nedbank, China Development Bank corporation, Development Bank of Southern Africa Limited and Industrial and Commercial Bank of China Limited which were die back in January and July of this year 2020.
Meanwhile the company said it is working on with it’s stakeholders to improve its liquidity, debt profile as well as long-term competitiveness as part of it’s turn around strategy.