Bahrain
Kuwait
Oman
Middle East
GDN Online App available on
App Store / Play Store
Gulf Daily News Gulf Daily News
Gulf Daily News Gulf Daily News Gulf Daily News Gulf Daily News Gulf Daily News
Wednesday, November 14, 2018 ARCHIVES  |  SEARCH  |  POST ADS  |  ADVERTISE  |  SUBSCRIBE   |  LOGIN   |  CONTACT US

Vodafone plans to slash jobs

International Business
Wed, 18 May 2016

Dubai: Vodafone Qatar plans to cut its workforce by a tenth, it said yesterday, as it reported a sixth straight widening quarterly loss citing competition and waning international call usage.

The Vodafone Group affiliate has yet to make a quarterly net profit since ending state-controlled Ooredoo’s domestic monopoly in 2009, but appeared close to breaking even in mid-2014.

Since then, however, Ooredoo has fought back, cutting prices to woo back customers and defend its market share.

Vodafone Qatar’s fourth-quarter loss nearly tripled from a year earlier to 180 million riyals ($49.5m) for the three months to March 31 versus 66m riyals a year earlier.

Vodafone Qatar’s financial year starts on April 1. The company’s net loss for the 2015-16 financial year was 465.7m riyals versus 215.8m the previous year.

Mobile average revenue per user, a key industry metric, for the 12 months to March 31 fell 13 per cent to 107 riyals.

In yesterday’s bourse statement the company also announced that Shaikh Khalid Bin Thani Al Thani had quit as chairman due to other work commitments. Rashid Al Naimi has been appointed acting chairman.

“The past year has been difficult for the company with the impact of structural changes in our industry, namely the increasing use of data at the expense of international voice traffic and sustained price competition,” Naimi said.

This has severely impacted Vodafone’s revenue performance, he added, with these difficulties prompting the company to decide to cut its workforce by 10pc. The company’s statement did not state when these layoffs would begin.

International calls had been lucrative for telecom operators in the Gulf. But Internet-based messaging and calling applications such as Skype and Whatsapp, which offer free or low-cost communication, have hurt this revenue stream.

You Might Like