Vodafone Idea Steps Up Cost-cutting Efforts
Vodafone Idea accelerated moves to streamline its operations to reduce costs by merging weaker service areas with strong ones, likely resulting in additional job losses, The Economic Times reported.
A source told the newspaper the company didn’t disclose how many staff would be at risk. It has a workforce of about 11,000.
The company reportedly is considering selling spectrum in areas where it has a low market share by revenue. India has 22 telecoms service areas, or circles.
Vodafone Idea previously said it completed the integration of constituent companies Vodafone India and Idea Cellular in 17 circles. As of mid-2019, the associated cost synergy programme was on track to meet a target of reducing annual opex by INR84 billion (US$1.1 billion) by end-June.
The operator faces a tax bill of INR530 billion following a Supreme Court ruling over the definition of adjusted gross revenue. It paid an initial INR35 billion on 20 February, but is seeking flexibility over payment terms and timelines.-Mobile World Live