South Africa’s debt-stricken power utility Eskom Holdings SOC Ltd. has begun a process to offer managers voluntary severance packages. Bloomberg South Africa’s debt-stricken power utility Eskom Holdings SOC Ltd. has begun a process to offer managers voluntary severance packages. Bloomberg
JOHANNESBURG - South Africa’s debt-stricken power utility Eskom Holdings SOC Ltd. has begun a process to offer managers voluntary severance packages.
The board allocated a budget of R400m to the plan, according to a document seen by Bloomberg. Eskom spokesperson Sikonathi Mantshantsha declined to comment.
Eskom has reduced jobs as it grapples with a R450bn debt burden. Its headcount fell to 46,665 employees in 2019, about 4% lower than the previous year, but wider staff cuts have been resisted by labor unions.
Staff levels remain close to what they were when a World Bank study in 2016 found that Eskom was potentially 66% overstaffed. The workforce has grown more than 23% in the past decade as the business has become loss-making and dependent on government bailouts.
The voluntary packages will be open for managers in non-core positions and those who are 60 to 62 years old, regardless of whether they’re in core, critical or non-core positions, according to the document.
Applications will start in the third week of February, with the exits planned by the end of April, subject to Eskom’s discretion, it said.
Eskom spokesperson Sikonathi Mantshantsha declined to comment.
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