Vodacom announces retrenchments in South Africa

Vodacom South Africa will retrench around 113 employees as part of a restructuring process at the telecommunications operator.

Vodacom said the restructuring will affect most employee levels, including management and senior management.

“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,” it said.

Vodacom said it regrets the restructuring’s impact on employees and is committed to supporting them through the transition.

“Vodacom South Africa remains focused on delivering exceptional value and relevant services to customers,” the company said.

It added that it needs to achieve this in a rapidly evolving telecommunications and beyond-mobile environment.

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

Vodacom’s staff cuts align with its five-year Vision 2030 strategy, focusing on return on capital and EBITDA growth targets.

As part of this strategy, Vodacom aims to grow earnings before interest, taxes, depreciation, and amortisation (EBITDA) by double digits from 2025 to 2030.

This represents an upgrade from the existing medium-term target framework of high single-digit EBITDA growth.

To achieve its planned financial performance, it is working to ensure a return on capital employed (ROCE) of 23.1%.

Another ambitious target is to achieve 75% smartphone penetration by 2030 from its current level of 63%.

Vodacom has set an ambitious target of increasing its total customer base by 50 million by 2030 and targeting 120 million financial services customers during this period.

All these targets should increase Vodacom’s revenue to over R200 billion by 2030, cementing its position as a top global telecommunications company.