Retrenchments hit Vodacom

Mobile telecoms operator Vodacom says it will be retrenching about 113 Vodacom South Africa employees across various levels, including management and senior management.

The group said this is due to a decision to restructure parts of its business.

“This step is part of our concerted effort to ensure that 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.

“We are confident that these changes, while difficult, help position the company for long-term sustainability,” Vodacom said.

The staff cuts align with the group’s five-year Vision 2030 strategy, which focuses on return on capital and EBITDA growth targets.

Vodacom wants to see double-digit growth in earnings before interest, taxes, depreciation, and amortisation (EBITDA) between 2025 and 2030.

It also wants to ensure a return on capital employed (ROCE) of 23.1% and to achieve 75% smartphone penetration by 2030 from its current level of 63%.

Part of the strategy is to also increase its customer base by 50 million people. Together these targets would raise the group’s revenue to R200 billion by 2030.

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