The South African Broadcasting Corporation (SABC) says all employees will be affected by the retrenchment process.

SABC Group Chief Executive Officer, Madoda Mxakwe says that the public broadcaster is technically insolvent and is unable to fulfil its monthly obligations. He was speaking at a media briefing held at the SABC head office in Auckland Park, Johannesburg, on Wednesday.

Earlier this week, the SABC issued a retrenchment notice in terms of Section 189 of the Labour Relations Act.

981 permanent employees are facing possible retrenchment as the SABC management looks to restructure the organisation. Mxakwe says the wage bill has been identified as one of the key constraints.  He says the R3 billion wage bill makes up 40% of the company’s total revenue.

However, Mxakwe denies allegations of a more costly and bloated management structure.

SABC Group Executive for Human Resources, Jonathan Thekiso, says everyone will be affected by the retrenchment process. However, the retrenchment criteria will consider critical skills, qualifications and experience. He says the last-in, first-out principle will also apply.

Thekiso says the organisation has so far saved up to R60 million by cutting fruitless and wasteful expenditure.

However, he could not confirm if the saving includes losses experienced during former Chief Operations Officer Hlaudi Motsoeneng’s stint at the public broadcaster.  The SABC currently has over 3 000 permanent employees and 2000 freelancers.