JOHANNESBURG (Reuters) - The South African Broadcasting Corporation (SABC) said on Thursday it had issued notices to its employees warning of a likely 600 lay-offs, as the indebted state firm looks to stabilise its finances.
“The notice follows the launch of the SABC’s new Target Operating Model - a strategic renewal initiative aimed at transforming the corporation into a financially sustainable, self-sufficient and fit-for-purpose public broadcaster,” it said in a statement.
SABC is among a clutch of heavily indebted state-owned firms that President Cyril Ramaphosa has promised to wean off public funding and make more transparent and accountable.
It made a net loss of 482 million rand ($27.77 million) in the 2018/19 financial year, compared with a net loss of 744 million rand in 2017/18. The government gave the broadcaster 3.2 billion rand this year to pay its bills.
Its staff of 3,167 permanent employees and 1,500 independent contractors remains amongst its biggest expenditure items.
($1 = 17.3547 rand)
Reporting by Mfuneko Toyana; Editing by Alex Richardson