BTC executives face the axe

It never rains but pours at Botswana Telecommunications Corporation Limited (BTCL), where fresh allegations of looming job losses have surfaced - this time targeting executive managers.Observers warn that if the restructuring proceeds, BTCL may face a leadership governance crisis. The move follows a contentious decision by Executive Management to lay off 200 workers under what has been described as an unlawful restructuring. Those same executives now appear to be under scrutiny themselves.The corporation is currently undergoing another restructuring exercise while facing a legal suit from the 200 former employees, who claim the previous process was flawed. The group has since petitioned the Office of the President for intervention.On Wednesday, BTC management downplayed the current exercise, insisting there would be no job losses. However, sources suggest that the planned overhaul of the Group’s Executive Committee (EXCO)—framed as a strategy to boost agility and competitiveness - is misleading.“This mirrors the same rationale used in 2022, which led to job cuts in December. That justification has never held water,” a source close to the developments said.BTC maintains that the Board is considering consolidating its two-tier EXCO structure into a single, high-impact leadership team to improve responsiveness and accelerate productdelivery. But insiders reveal that the exercise could affect up to 10 General Managers, many of whom hold overlapping roles.Since CEO Jürgen Peschel’s appointment, a strategy has been introduced to balance business performance with the high salaries and allowances of EXCO members. Sources within the Board allege that the 2022 restructuring created redundant positions and was marred by favouritism.“There’s been duplication of duties. We can’t sustain this bloated GM structure,” an insider said.It is further alleged that the EXCO wage bill has strained the company’s balance sheet. After the 2022 restructuring, executives reportedly awarded themselves generous salaries, allowances, and entertainment budgets.Concerns have also been raised about contracts extended to individuals beyond the retirement age of 55, despite qualified successors being available.In a statement, Peschel defended the restructuring as the second phase of BTC’s growth strategy: “We are evolving to meet the demands of a fast-changing market. Our customersexpect speed, innovation, and seamless service, and this restructure will enable us to deliver just that.”He emphasised that the changes apply only to EXCO roles and will not affect staff-level positions or frontline operations. “Let me be clear—there are no job cuts at the staff level. Our people remain central to BTC’s success.”Yet insiders remain skeptical, citing the issuance of Section 25 notices under the Employment Act, which signal potential job losses.“You can’t claim there won’t be cuts when Section 25 is in play. It’s essentially garden leave - employees are sent home and barred from working elsewhere,” a source said.Section 25(1) of the Botswana Employment Act Cap 47:01 stipulates that workforce reductions must follow the “first in, last out” principle, wherever reasonably practicable.BTC argues that the restructuring follows a period of strong financial performance, citing a 30 percent increase in profit before tax, a 28 percent rise in earnings per share, and a 40 percent gain in share price over the past year.

Explore

More

Business

BTC executives face the axe