Vodacom aiming to cut 80 jobs in SA

Vodacom aims to cut about 80 jobs in SA as part of a cost reduction effort as the company changes its operations.

Vodacom SA said on Tuesday that the move was in line with its strategy of moving beyond traditional telecom.

“We routinely ensure that our business operations are fit for purpose as we transition from a telco to a leading technology company,” said a Vodacom spokesperson.

“To ensure the continued efficiency of key functions and maintain our competitive edge, we anticipate that our latest operational review will affect fewer than 80 employees.”

Corporate SA has experienced a spate of retrenchments and job cuts in recent years. Telecom operators particularly have been slimming down their workforces for various reasons.

In 2023, rival Telkom moved to cut 15% of its workforce, which at the time equated to about 1,770 jobs.

Telkom has the largest staff count of SA’s four largest mobile providers at about 10,000.

In early 2022, MTN said that a strategy shift would affect up to 327 jobs, primarily in its finance department.

In 2021, Cell C reported a headcount reduction from 2,600 to 1,340. The company now has fewer than 1,000 employees.

Tech companies worldwide have been reducing headcount after big hiring sprees through the Covid-19 pandemic.

Some roles are apparently becoming obsolete as telecommunications operators evolve.

Similar trends have been noted in areas such as customer care in which companies have laid off segments of their call centre staff in favour of automation and chatbot platforms.

In mining, Anglo American announced job cuts at its head office in 2023.

Steel producer ArcelorMittal announced plans to cut thousands of jobs due to economic challenges.

“This decision aligns with our commitment to adapt and optimise our business to meet evolving industry and customer demands. Additionally, Vodacom SA continues to proactively implement various cost-reduction measures to ensure sustainable operations and maintain financial resilience,” said Vodacom.

The group reported revenue for the third quarter to December increased 26.8% to R38.9bn, “positively affected by the acquisition of Vodafone Egypt”.

Revenue for the SA unit stood at R22.8bn, up 4%, supported by strong growth in equipment revenue.

In February, Vodacom announced annual increases for its postpaid and fibre tariffs as it grapples with higher operating costs, while working to keep and attract customers to its network.

The price adjustments, effective from April, equated to an average increase on a customer’s total bill of 4.6%, lower than January’s consumer inflation number of 5.3%.

Vodacom’s share price was down 2.79% on Tuesday at R90.38, and MTN’s was down 1.17% in the same session at R83.83, while Telkom was 3.01% firmer at R26.