A Vodacom Group spokesperson has pointed out that the company routinely conducts these kinds of exercises to ensure its business operations are fit for purpose. The spokesperson also said it’s part of a plan to transition from a telecommunications firm to a leading technology company.
“Additionally, Vodacom South Africa continues to proactively implement various cost reduction measures to ensure sustainable operations and maintain financial resilience,” they added.
Branding itself as an African-focused connectivity, digital, and financial services firm, Vodacom Group Limited is a South African mobile communications company that provides voice, messaging, data, and converged services to customers all over Africa.
Vodacom Business Africa (VBA), the company’s enterprise-focused ICT subsidiary, provides business solutions to enterprises in 47 countries, including Nigeria, Kenya, and Ghana.
The company claims to serve over 500 million customers in its area of operations: Africa.
With an unemployment rate of 32.1% brought about by the ongoing economic downturn in the country, metal prices have plummeted, forcing relevant companies to look for ways to reduce costs, including cutting jobs. In fact, South African platinum producers are reportedly set to cut more than 6,000 jobs.
A spokesperson for the Congress of South African Trade Unions, Matthew Parks, speaking about Vodacom’s plan to lay off workers, stated that the union will explore other alternatives to downsizing.
Parks also insists that Vodacom has no grounds to lay off workers, pointing out that the company made huge profits.
In the six months that ended on September 30, Vodacom’s net income increased by 9% to R8.5 billion ($447 million), compared to costs which surged 37% to R28 billion ($1.5 billion).
