Vodacom, South Africa’s biggest mobile operator, is looking to retrench employees in a new round of job cuts.
ITWeb was informed by a source, who preferred to remain anonymous, that the company is looking to retrench 10% of its employees (about 400).
According to the source, Vodacom this week made a presentation to the employees about its plans to initiate a Section 189 retrenchment process.
Section 189 of the Labour Relations Act sets out the legal requirements for retrenchments for companies.
It stipulates that the employer should consult with the affected employees and try all means to prevent retrenchments, or come to another solution.
The source noted that 400 affected employees have already been served with the retrenchment letters.
The company has confirmed to ITWeb that it is letting go of its employees.
“Vodacom South Africa has taken the difficult decision to restructure parts of our business, which unfortunately could impact circa 113 of our valued employees, across various levels, including management and senior management,” says a Vodacom spokesperson via e-mail.
“This step is part of our concerted effort to ensure the company remains fit-for-purpose to support our strategic shift toward becoming a leading technology company. While we deeply regret the impact that this has on colleagues, we are fully committed to supporting them through this transition.
“Vodacom South Africa remains focused on delivering exceptional value and relevant services to customers in a rapidly-evolving telecommunications and beyond mobile environment, and we are confident that these changes, while difficult, will help position the company for long-term sustainability.”
While Vodacom says 113 employees will be impacted, ITWeb understands that 400 workers have been consulted about the Section 189 process.
This is not the first time Vodacom has wielded the axe on its employees.
In March last year, the company introduced an operational review and cost-cutting process that impacted a minimum of 80 jobs.
At the time, it said the decision aligned with the telecoms operator’s commitment to adapt and optimise its business to meet evolving industry and customer demands.
In its latest financial results, Vodacom Group reported marginal gains for the third quarter of the 2024 financial year, with group revenue growing 1.6% to R39.5 billion, impacted by a stronger rand.
South African service revenue growth improved to 3.2%, supported by prepaid, while Tanzania and Democratic Republic of the Congo were significant contributors to the normalised 7% growth in its international business.
According to the operator, the improved Vodacom South Africa performance was underpinned by several factors, including successful seasonal campaigns, an improved consumer environment in the prepaid segment and a 40.6% increase in data traffic.
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