TelEm Group Announces Workforce Reduction in the Face of Ongoing Financial Challenges

2403

 

SINT MAARTEN, Philipsburg – TelEm Group of Companies today announced to employees that the company will be making a significant reduction in the company’s workforce effective April 1, 2024.

The official announcement was made to TelEm Group employees in a general meeting at 4:00 pm on Friday, January 26, 2024, by CEO, Mr. Kendall Dupersoy and CFO Mr. Randell F. Hato with TelEm Group Employees and Managers present.

The decision follows proactive measures in the past three months aimed at addressing severe financial challenges and ensuring the company’s sustainability in a dynamic telecommunications industry.

A letter has been sent to the Council of Ministers and Shareholder of TelEm Group, notifying them of the workforce reductions. A meeting was held with the Supervisory Board of Directors on Thursday, January 18, 2024, to update members on the pending actions and seek board approval to proceed with the transformation process.

The company has also informed two unions representing TelEm Group employees and managers, expressing its commitment to reaching a mutually acceptable Social Plan and voluntary exit agreement for all displaced employees.

Concurrent with the reduction in workforce will be adoption of a new organizational structure. The structure is more in line with the ‘Integrated Digital Service Provider’ that TelEm must adopt going into the future.

Management recently met with bondholders to update the consortium of banks on the measures being taken to ensure the long and short-term ability of TelEm Group to continue to meet its loan obligations, and this information was also imparted to employees during Friday’s announcement.

In September of the previous year, TelEm Group communicated the critical financial situation to its team members and the need for immediate action to revitalize the company

and in parallel, start the transformation activities to execute a new strategy to become an Integrated Digital Service Provider, to meet rapidly changing market conditions. Despite strategic realignment efforts, the anticipated improvements have not materialized over the three-month period.

The company’s financial challenges have necessitated the need for a strategic transformation into an Integrated Digital Service Provider. This transformation requires a significant shift in the way business is conducted and telecommunication services are delivered to the St. Maarten community. As part of this process, several current positions within the organization will no longer be necessary, leading to the difficult decision to streamline the workforce.

The transformation into an Integrated Digital Service Provider requires a significant shift in the way business is conducted and telecommunication services are delivered.

TelEm’s new strategy towards an Integrated Digital Service Provider is focusing on making the following strategic shift:

  • Unlock new revenue streams
  • Create a lean cost base
  • Realize future proof networks (fixed and mobile)
  • Deliver a top customer experience
  • Implement a fit-for-purpose organization to deliver these strategic objectives

In a letter to the TelEm Group team members, management has emphasized the commitment to transparency and openness. The company pledges to provide support to those affected during this challenging time and encourages open communication.

“We understand the gravity of this announcement and the personal impact it has on our valued team members. This decision was not made lightly, and we are fully committed to handling this process with compassion and sensitivity,” said TelEm Group CEO, Mr. Kendall Dupersoy.

The company acknowledges the need for a compassionate approach in managing this difficult transition and has engaged with affected employees to discuss details, address concerns, and provide guidance on available resources and support.

TelEm Group remains confident in its ability to navigate through these challenging times, ensuring a sustainable future for the company and continued service excellence for the St. Maarten community.