Vodacom, South Africa’s largest mobile network operator by subscriber base, will cut 80 jobs to reduce costs, according to reporting by Bloomberg. The job cuts will impact all levels of the telco’s operations. Vodacom currently employs 5,400 people.
The company’s stock price is down by 2% following the news of the retrenchment.
“We routinely ensure that our business operations are fit for purpose as we transition from a telco to a leading technology company,” said a spokesman for Vodacom. “Additionally, Vodacom South Africa continues to proactively implement various cost reduction measures to ensure sustainable operations and maintain financial resilience.”
Per Vodacom’s latest financial report released in September 2023, the company’s revenue and operating income increased by 35% and 32%, respectively. However, the company’s profit margin and cash in hand were also down 20% and 57%, respectively, with the company citing investment into alternative power sources because of load-shedding as a contributing factor.
Vodacom’s next financial results are set to be released in May for the financial year ended March 31, 2024.
With the news of the retrenchments, Vodacom continues to face a flurry of issues in recent times. The company is currently involved in a protracted legal battle with a former employee about remuneration for the invention of the “Please Call Me” service.
According to a court ruling, the ex-employee is eligible for a percentage of revenue from the service which might go as high as R63 billion. This would be equal to about 10% of Vodacom’s market capitalisation.
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