Vodacom is set to lay off 80 employees in South Africa in a bid to cut costs. The company, Vodacom Group Ltd., a leading mobile communications company majority-owned by Vodafone, has announced its intention to streamline its workforce in South Africa as part of cost-cutting measures.
Vodacom to Lay Off 80 Employees in South Africa
In response to inquiries on Monday, March 18, 2024, Johannesburg-based wireless firm Vodacom Group Ltd., currently employing 5,400 individuals, has announced plans to downsize its workforce across all organizational levels.
A spokesperson for Vodacom Group clarified that such actions are part of the company’s ongoing transition from a telecom entity to a leading technology company. These exercises ensure that all business operations remain aligned with the company’s objectives.
“Additionally, Vodacom South Africa continues to proactively implement various cost reduction measures to ensure sustainable operations and maintain financial resilience,” they added.
Vodacom Group Limited and Its Aim in Africa
Vodacom Group Limited, now positioning itself as an African-focused connectivity, digital, and financial services provider, offers voice, messaging, data, and converged services to customers across the continent.
Vodacom’s Africa Expansion
Since its inception in South Africa, the company has expanded to Tanzania, the Democratic Republic of the Congo, Mozambique, Lesotho, Kenya, Ethiopia, Egypt, among other regions. Vodacom Business Africa (VBA), its enterprise-focused ICT subsidiary, serves businesses in 47 countries, including Nigeria, Kenya, and Ghana.
The company claims to cater to over 500 million customers in the African markets it operates in.
South Africa’s Ongoing Economic Challenges
Amid South Africa’s ongoing economic challenges, reflected in an official unemployment rate of 32.1%, companies, including platinum producers, are reducing their workforce to cut costs due to declining metal prices.
Vodacom’s Workforce Reduction Plan
Regarding Vodacom’s workforce reduction plan, Matthew Parks, a Congress of South African Trade Unions spokesperson, expressed concerns and stated that the union would explore alternatives to downsizing. He argued that Vodacom’s substantial profits provide no justification for retrenchments.
In the six months ending September 30, Vodacom’s net income rose by 9% to R8.5 billion ($447 million), while costs surged by 37% to R28 billion ($1.5 billion).
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