S. Africa’s power utility cuts jobs to reduce wage bill

By Hassan Isilow

JOHANNESBURG (AA) South Africa’s cash-strapped power utility Eskom has announced it is reducing its executive management positions from 21 to 9 in a bid to reduce its wage bill and become profitable.

“This was not an easy process, and I appreciate the patience and support of all those involved as we worked to conclude matters as efficiently as possible,” Phakamani Hadebe, the company’s chief executive officer, said in a statement released on Sunday night.

Eskom which supplies over 90 percent of electricity to Africa’s most industrialized economy has been dogged with financial troubles and scandals of mismanagement over the years.

It currently has a financial debt of over 400 billion rand (about $27 billion)and is seeking a government bailout.

Last month, the company introduced power cuts as it embarked on maintaining old power plants.

The state-run enterprise hopes that its small number of executives would set it on a new path to stability and profitability.