Business News of 2014-06-10

Tigo justifies dismissal of workers

Telecom operator Tigo has justified its recent redundancy exercise which saw scores of its workers sent home.

Citi Business News has gathered the dismissals which commenced a few weeks back affected the sales and finance departments of the company the most.

It’s unclear exactly how many workers have been sacked but a letter from management of the company to staff cited by Citi Business News said the move was aimed at ensuring prosperity, strength and sustainability of the business.

Tigo is the third largest telecom operator in the country with over four million subscribers.

It has stayed at the number three position for years, but this position is currently being threatened by Airtel which is the fourth largest telecom operator in the country with over 3.5 million voice subscribers.

Sources familiar with the matter told Citi business news the dismissals commenced following the poaching of some critical staff members of Tigo by Airtel early this year.

However, the telecom operator in response to Citi business news’s enquiry on the matter said the move is to ensure its ability to compete in ‘this highly competitive market and build a sustainable business’.

According to Tigo, it has become necessary for it to review its operation based on a thorough evaluation of the company’s structure and strategic objectives. It adds that the changes, together with other initiatives, will make Tigo more responsive to the needs of its customers.

It concludes by re-affirming its commitment to maintaining a responsible business by fulfilling its obligations to government, growing local talent, and investing in the communities in which it operate.