Fixed telecommunication service provider, TelOne targets to reduce its wage bill by 6 percent through the on-going rationalisation programme targeted to improve profitability.
Profitability at the parastatal has not been impressive for the last year with revenue declining by close to US$25 million as reflected in the firm’s financial results for the year ended 31 December 2016.
A recurring legacy loan portfolio of US$364 million inherited from the Post and Telecommunications Corporation era coupled with other factors affected the firm’s balance sheet.
As part of containing the losses, TelOne Managing Director, Mrs Chipo Mutasa said the ongoing rationalisation on the work force will assist in recouping some of the losses posted by the company.
The Minister of Information Communication Technology (ICT), Postal and Courier Services, Cde Supa Mandiwanzira said as the government, they believe that this strategy will also be critical to restore profitability at the parastatal.
TelOne is also buoyant that the completion of the US$98 million national broadband project in the first half of next year will spur the firm to profitability and long term sustainability by 2019.