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Thursday, October 22, 2009

Redundancies hit Vodafone NZ,


The mobile service provider's customer base now stands at 4.2 million, up around 110,000 on the company's half yearly results reported last November. The results, which covered the quarter to 31 December 2008 were heavily influenced by the completion of its acquisition of Crazy John's, which added around 76,000 new customers, who since July became direct customers of Vodafone.
Hewitt yesterday boasted that Vodafone's latest figures had shown it was "resilient" to the economic downturn.
"No company is immune to recession, but Vodafone Australia has proven to be extremely resilient to date. During the Christmas quarter and beyond, Vodafone maintained an extremely keen position on price and value, which resonated well with customers," he said in a statement.
Customers acquired through Mobile Virtual Network Operator (MNVO) partners such as People Telecom, which it signed last year, stood at 305,000 - down 54,000 since November's report. A spokesperson for the company said the decline was due to Crazy John's customers now being included in its direct customer base.
"Crazy John's sales during Q3 exceeded all expectations, and our ownership of the company has already proven to be the right buy at the right time for Vodafone," Hewitt said.
The strategy behind today's results, according to Hewitt, was the company's focus on exclusive handsets, such as the iPhone and internet services.
"During Q3, Vodafone concentrated on exclusive handsets, mobile broadband devices, high-value plans and a powerful retail presence. As a company with many moving parts in retail, technology and customer service, we lined up in perfect formation and achieved excellent results in a softening market."The number of job losses could be as high as 20, but a company spokesperson said the exact number was yet to be determined.
The spokesperson said that from time to time, Vodafone reviewed part of its business to ensure its structure and approach was best able to deliver to its customers, adding the goal of the review wasn't merely cost-cutting, but to make sure Vodafone had the right structure in place for the current environment.
At this stage, they said consultations with the staff affected were still in progress. Vodafone intends to minimise job losses caused by the review, and employ staff in other areas of the business rather than making them redundant.
Vodafone is New Zealand's largest mobile operator with over 2.2 million customers and a 55 per cent market share. The company also has a sizeable fixed-network presence, providing broadband and telephony services to retail and business customers. It employs around 1,400 staff in Auckland, Wellington and Christchurch.

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