Vodacom, Africa’s largest wireless company by market value, has announced plans to cut about 80 jobs in South Africa, stirring questions about its connection to the ongoing legal battle with Nkosana Makate.
Vodacom announces plans to cut jobs in South Africa
Vodacom Group Ltd, headquartered in Johannesburg, is set to reduce its workforce in South Africa by about 80 positions.
This decision is part of the company’s broader strategy to lower expenses and adapt its business model.
With around 5 400 employees, these cuts are expected to affect various levels within the organisation.
A company spokesperson elaborated:
“We routinely ensure that our business operations are fit for purpose as we transition from a telco to a leading technology company. Additionally, Vodacom South Africa continues to proactively implement various cost reduction measures to ensure sustainable operations and maintain financial resilience.”
This move, Vodacom explained, is an effort to navigate the challenges of transforming into a technology-focused entity while maintaining its financial health, albeit, in 2023, the company raked in R8.5 billion in net income, a 9% increase from the previous financial year, per Business Tech.
Is Vodacom preparing for the ConCourt ruling on the Nkosana Makate case?
The timing of Vodacom’s job reduction announcement has led to speculation regarding its connection to the company’s legal dispute with Nkosana Makate, the inventor of the ‘Please Call Me’ service.
Makate has been in a prolonged legal battle with Vodacom for compensation over the invention, which has spanned nearly two decades.
Recently, he urged the Constitutional Court (ConCourt) to reject Vodacom’s appeal against a Supreme Court of Appeal (SCA) ruling, which mandated the company to recompense Makate.
He argued that Vodacom’s appeal does not raise any constitutional issues or points of law of general public importance that would warrant the ConCourt’s intervention.
Furthermore, Makate highlighted that the dispute is essentially a contractual matter concerning the revenue share from his invention.
Makate’s affidavit points out several reasons why Vodacom’s appeal should be dismissed, including the lack of jurisdictional grounds and the factual nature of the dispute.
He accuses Vodacom of dishonesty and expediency in its litigation strategy and dealings with him. The ‘Please Call Me’ inventor also notes that Vodacom has acknowledged his contribution to the product in the past but is now attempting to undermine his claim for fair compensation.
The cost-cutting measures, including workforce reductions, are part of Vodacom’s broader strategy to maintain its financial stability and adapt to the evolving technological landscape.
However, the juxtaposition of this announcement with the ongoing legal battle raises questions about whether there is a direct correlation or if the timing is merely coincidental.