Vodacom Group Ltd., the largest wireless company in Africa by market value, has announced plans to cut jobs in its biggest market, South Africa.
The company expects to cut about 80 jobs across all levels as part of its cost reduction measures.
BMA understands that the firm employs about 5,400 people, and the reductions will be at all levels of the company.
“We routinely ensure that our business operations are fit for purpose as we transition from a telco to a leading technology company,” said a spokesman for Vodacom.
“Additionally, Vodacom South Africa continues proactively implementing various cost reduction measures to ensure sustainable operations and maintain financial resilience.”
Tepid growth in South Africa, where the official jobless rate is 32.1%, and a plunge in metal prices is prompting companies to shed jobs to reduce costs.
The nation’s platinum producers are in the process of trimming more than 6,000 jobs.
The company’s shares plunged as much as 3.5% as of 1.06 p.m. in Johannesburg, out-pacing a 0.8% decline in the benchmark stock index.
“We will pursue all alternatives to retrenchments,” said the Congress of South African Trade Unions spokesperson Matthew Parks.
“Vodacom has made massive profits, and there is no justification for retrenching a single worker.”
Vodacom’s net income rose 9% to US$449 million in the six months ended 30 September, while costs jumped 37% to US$1.4 billion.
