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Vodacom SA employees face retrenchments

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 19 Mar 2024
Vodacom's offices in Johannesburg.
Vodacom's offices in Johannesburg.

Vodacom South Africa has introduced an operational review and cost-cutting process that will potentially impact a minimum of 80 jobs.

According to a statement, this decision aligns with the telecoms operator’s commitment to adapt and optimise its business to meet evolving industry and customer demands.

Vodacom spokesperson Byron Kennedy says: “As Vodacom South Africa, we routinely ensure our business operations are fit-for-purpose as we transition from a telco 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.”

The company says it continues to proactively implement various cost-reduction measures to ensure sustainable operations and maintain financial resilience.

“Our focus remains on delivering excellent service and great value to our customers, and we are committed to supporting those affected by these changes with utmost care and professionalism during this transitional period.”

The development comes as the operator enters the final stages of its "Please Call Me" legal battle with inventor, Nkosana Makate.

In its ConCourt appeal, Vodacom warned of the dire financial implications that could arise from a large compensation payout in the legal matter.

The operator raised concerns that a payout of billions in compensation to Makate would be unreasonable, noting it would also have a negative impact on its network investment, coverage and social programmes, and the attractiveness of SA as an investment destination.

In its latest results trading update for the quarter ended 31 December 2023, Vodacom Group’s revenue increased 26.8% to R38.9 billion, positively impacted by the acquisition of Vodafone Egypt.

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