TNM set to fire Some employees
S
ome employees at TNM plc are expected to lose their jobs as the Malawi Stock Exchange-listed firm has engaged in a structural review process that could see some positions being made redundant while others retrenched.
In a letter addressed to its more than 500 employees on Wednesday and signed by the firm’s chief executive officer Michel Herbert, TNM plc said it has embarked on a transformation process to ensure that the firm achieves its mission of providing the best digital experience.
The firm has indicated that under the exercise, some engineering functions will be outsourced under managed services contracts.
Reads the communication in part: “To reach the level of competitiveness we need, we will implement a new organisational structure aligned with our new strategy and company direction.
“The new organisation aims to simplify work processes, build future digital skills, push empowerment down to the front lines, have clear accountability and enhance overall efficiencies.”
In the communication, Herbert said the company will follow a strict and fair process in the selection criteria for fitting its employees into the new organisation and for those that will be retrenched.
He said the process will be led by mixed panels of managers, one in each business area who will focus on current and previous performance, skills and qualifications and fitness with TNM’s values and new strategy.
TNM Staff Association president Charles Ndimbo said yesterday they have been engaging management since March to ensure a fair process.
But Ministry of Labour Principal Secretary Wezi Kayira in an interview yesterday said the news is a cause for concern as TNM plc remains one of the big companies in the country.
He said: “We appreciate that the restructuring process is a business decision that any company decides to do based on the economic environment,.
“Such a process does result in some job losses and companies do report such incidents to the ministry. We expect TNM plc to do that if they have not yet reported. We will further engage the company so that all the labour laws are followed when retrenching employees.”
Over the last four years, TNM plc profits have been fluctuating due to several factors, including functional reviews and the economic environment, according to the firm’s published statements.
In the year-ended December 31 2019, TNM plc registered a profit after-tax of K15 billion, a decrease from the previous year’s K16.6 billion due to, among other factors, one-off functional review costs and increase in depreciation expense resulting from network investments.
In following year, company’s profit also declined to K7.73 billion, but its profit rose by 25 percent to K9.69 billion in 2021.
In the period ended December 31 2022, TNM reported a K1.76 billion loss from a profit of K9.69 billion.
