by Dolapo Adelana
Telecommunications company, MTN Nigeria has disengaged 200 full-time employees and 80 contract staff.
The move is part of a restructuring exercise in line with the company’s IGNITE transformation initiative to reposition it into diverse segments of the economy including digital payments, financial technology (FinTech) etc.
According to a source in the company, MTN introduced the Voluntary Severance Scheme (VSS), to provide a window for one week in April, for persons who have served in MTN for five years and above to take up. Those who decided to leave under the VSS were to be paid the equivalent of their three weeks gross salary for every year they worked with MTN.
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“What it means is that if one worked in MTN for five years, one would be paid three weeks of their gross salaries times five. 200 permanent staff signified interest. Unfortunately, on Friday, the company decided to add 80 contract staff to the list,” the source said.
Many of those sacked spent up to 15 years with the company having joined MTN as it opened its business in Nigeria in 2001. Those were given a severance of 75 percent of their gross monthly income multiplied by the number of years with the company.
“With the payoff structure, senior managers with 15 years of service were left with about N15 million. Most of the staff got less than N5 million,” according to another source.
When contacted MTN Nigeria spokesperson, Funso Aina said the company was going to issue a statement on the matter.
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