South African fibre network operator cutting jobs

Independent fibre network operator Link Africa-BitCo has retrenched several employees, MyBroadband has learned. The company confirmed the layoffs and said that 21 employees were impacted.

Link Africa-BitCo’s group CEO, Imran Abbas, said the layoffs were part of a strategic internal restructuring aimed at aligning their operations more effectively with their long-term business goals.

“This decision was not taken lightly and followed a thorough and consultative process following labour regulations,” Abbas stated.

“The restructuring is intended to enhance operational efficiency, support future growth, and ensure we remain agile and competitive in a dynamic market.”

Abbas said they were committed to supporting all affected employees through the transition, including offering appropriate support and resources.

“The overall impact on our business operations is minimal, and we continue to focus on delivering high-quality services to our clients and stakeholders without disruption,” said Abbas.

“Our core teams remain strong, and we are optimistic about the opportunities ahead.”

The retrenchments come after Link Africa acquired BitCo Telecoms for an undisclosed sum in April 2024.

Word on the street at the time was that BitCo had run into financial trouble and was seeking a buyer. Link Africa denied this speculation at the time, saying that BitCo was not in any financial distress.

“The acquisition will enable Link Africa to expand its product portfolio, customer base, and network coverage across the country,” the company said.

While both companies offer residential and business fibre services, Link Africa said its focus has been on underserved and remote areas.

“BitCo Telecoms, on the other hand, has a strong presence in the business and enterprise sectors,” it said.

BitCo offers a range of services such as fixed line, voice solutions, and cloud services, and Link Africa said it has a loyal and diverse customer base, ranging from SMEs to large enterprises.

“BitCo Telecoms also provides cloud security and SDWAN solutions, as well as a robust network core,” said Link Africa.

It said the acquisition would combine both companies’ complementary strengths and capabilities, creating a stronger and more diversified telecommunications provider.

BitCo CEO exit

BitCo CEO Jarryd Chatz departed the company following the acquisition. Chatz Connect had bought a 50% stake in BitCo in June 2014, and he joined the company as Business Development Director.

Chatz took over as CEO when founder Garth van Sittert stepped down in 2016.

“It has truly been an incredible journey building and expanding BitCo Telecoms over the past decade,” he said last year. “These two companies will undoubtedly spur each other on to greater heights of excellence.”

Van Sittert founded BitCo in 2005 when Telkom still held a government-sanctioned monopoly over fixed-line telecommunications in South Africa.

BitCo stood ready to take advantage of South Africa’s hard-won telecommunications freedom as the market became more liberalised.

When the industry took the late former communications minister Ivy Matsepe-Casaburri to court and won, a world of new opportunities opened up for the company.

It became a wireless Internet service provider (Wisp), building its own Wi-Fi-based last-mile wireless network that helped provide an alternative to Telkom DSL.

BitCo also rolled out its own Metro Ethernet network in South Africa’s major cities.

When Vumatel broke open the residential fibre market in 2014, BitCo was also rolling out infrastructure — including upmarket residential estates.

Unfortunately, Link Africa-BitCo’s retrenchments are not unique. South Africa’s ICT sector has come under pressure in recent years, with higher interest rates and depressed consumer spending power weighing on the industry.

Vodacom, several banks, and software development house Derivco have all undergone retrenchments in recent months.