Vodacom South Africa has announced the commencement of an operational review and cost-cutting process that may impact at least 80 jobs. This decision is part of the telecom operator’s ongoing efforts to adapt and optimize its business operations to meet the evolving demands of the industry and its customers.
Byron Kennedy, a spokesperson for Vodacom, explained the rationale behind the decision:
As Vodacom South Africa, we routinely ensure our business operations are fit-for-purpose as we transition from a telecommunications company to a technology company. To ensure the continued efficiency of key functions and maintain our competitive edge, we anticipate that our latest operational review will impact less than 80 employees.
Vodacom has emphasized its commitment to proactively implementing various cost-reduction measures to ensure sustainable operations and maintain financial resilience. The company remains focused on delivering excellent service and great value to its customers, and it is committed to supporting those affected by these changes with the utmost care and professionalism during this transitional period.
This development comes as Vodacom enters the final stages of its “Please Call Me” legal battle with inventor Nkosana Makate. In its appeal to the Constitutional Court, Vodacom has warned of the severe financial implications that could arise from a substantial compensation payout in this legal matter. The operator has raised concerns that a payout amounting to billions in compensation to Makate would be unreasonable and could negatively impact its network investment, coverage, social programs, and the attractiveness of South Africa as an investment destination.
In its latest trading update for the quarter ended December 31, 2023, Vodacom Group reported a 26.8% increase in revenue, reaching R38.9 billion. This positive financial performance was significantly influenced by the acquisition of Vodafone Egypt. As Vodacom navigates these operational changes and legal challenges, the company remains committed to its strategic goals and to maintaining its position as a leading technology company in South Africa.
