South African power utility Eskom has announced plans to cut down its executive management team in a bid to reduce its wage bill.
According to Reuters, an internal memo indicates that the state-owned power company will shed 11 executive positions, cutting the number to just 10 from 21.
“It is crucial that we set ourselves up for the future, and I believe that the steps we’ve to take so far are already placing us on a path towards stability,” Chief Executive Phakamani Hadebe said in the memo.
Eskom spokesman Khulu Phasiwe confirmed that the company had approved the re-organization of the top management structure.
Cast strapped Eskom, which has implemented power cuts in recent months due to coal shortages and poor plant performance, is fighting for survival after a decade of financial decline.
Earlier President Cyril Ramaphosa ruled out Eskom’s request for a state bailout, instead pushing for other restructuring plans to give the utility firm financial headroom.
It previously stated that it wants to substantiality cut its 48,000 workforce.
Among those leaving the utility is Dave Nicholls, the head of nuclear energy, who was due to retire next year. He is leaving at the end of month as are seven other executives, according to the memo