Vodacom Group Ltd., a prominent mobile communications firm majority-owned by Vodafone, has revealed plans to optimise its operations in South Africa through a strategic reduction in its workforce.
Responding to inquiries on Monday, March 18, 2024, the Johannesburg-based telecommunications giant, currently boasting a workforce of 5,400 employees, disclosed that the reduction would be implemented across all levels of the company.
A spokesperson for Vodacom Group elaborated that this action aligns with the company’s ongoing transformation from a traditional telecom provider to a leading technology-driven enterprise.
“Furthermore, Vodacom South Africa remains committed to implementing various cost-saving initiatives to ensure sustainable operations and bolster financial resilience,” the spokesperson emphasised.
Vodacom Group Limited, which now positions itself as an African-focused connectivity, digital, and financial services entity, has a significant presence in the South African mobile communications landscape. Over the years, it has expanded its footprint to encompass markets in Tanzania, the Democratic Republic of the Congo, Mozambique, Lesotho, Kenya, Ethiopia, and Egypt.
Vodacom Business Africa (VBA), the enterprise-focused ICT subsidiary of the South African company, extends its services to businesses across 47 countries, including key markets such as Nigeria, Kenya, and Ghana. The company prides itself on serving over 500 million customers across the African continent.
The decision to reduce its workforce comes amid economic challenges in South Africa, where the official unemployment rate stands at a staggering 32.1%. These challenges, exacerbated by a decline in metal prices, have led various companies, including platinum producers, to undertake job cuts as a cost-saving measure.
In response to Vodacom’s planned layoffs, Matthew Parks, spokesperson for the Congress of South African Trade Unions (Cosatu), expressed the union’s determination to explore alternative solutions to downsising. He stressed that despite Vodacom’s healthy profit margins, there appears to be no justifiable rationale for workforce reductions.
Vodacom’s financial performance reflects a mixed picture, with net income rising by 9% to R8.5 billion in the six months ending September 30. However, this growth was juxtaposed against a significant 37% surge in costs, totaling R28 billion during the same period.
