South Africa’s Eskom has offered some managers voluntary severance packages, capping costs at 400 million rand ($27 million), a communique sent to staff on February by the struggling state power utility showed, according to Reuters reporting.
Eskom said in a statement that it would recoup the cost of the severance packages through savings within a year. “Eskom will ensure that no critical skills will be lost as a result of the program,” adding “The purpose of the separation process is to rationalize management layers, which will lead to an efficiently run company.”
The Eskom message said that staff could apply for the severance packages from the third week of February, with employee exits planned for the end of April. The severance packages are open to managerial employees in non-core positions as well as managers from 60 to 62 years old, according to the communique.