Job cuts finally approved at Celtel

2 Nov 2005

Celtel Tanzania is going ahead with drastic job cuts in the wake of its split from former parent company, fixed line incumbent TTCL. Celtel says it plans to axe more than 1,200 of its 3,500-strong workforce, with redundancy payments being met by TTCL. The mobile operator has been planning the cuts for two years but they have been blocked by unions, unhappy with the compensation packages being offered. Axed workers will now get three-times the pay-off that Celtel originally proposed when it first announced the job cuts in 2003. Celtel, which separated from TTCL four month ago, serves almost a quarter of the Tanzanian mobile market, with around 560,000 subscribers, while market leader Vodacom has 1.38 million customers on its network.