Zain announces 13 per cent workforce reduction amounting to 2,000 staff

At a strategic meeting with senior Zain executives from, Zain Group CEO Saad Al Barrak this week announced a new programme to propel the company towards its 2011 target of being a top ten global mobile telecommunications operator. ‘Drive2011’ will focus on customer-facing services and commercial activities while centralising or outsourcing some back office/non-core functions to strategic partners.

The programme will look maximise economies of scale and realise significant efficiencies, allowing Zain to provide communication services such as voice, SMS and data at an optimum cost level. Drive2011 is expected to improve Zain’s operating margin by 5 per cent within 12 months.

The Zain Group will align its head office and operations structures in accordance with the new operating model. This will result in Zain reducing its current 15,500 global workforce by 2,000 – a 13 per cent reduction across the board. Zain’s operations in Iraq, Jordan, Kenya, Kuwait, Malawi and Sierra Leone have already begun the process.

In a move aimed at tackling the challenges ahead and attaining other 2011 targets of 150 million customers and a US$6 billion EBITDA, Al Barrak also announced several senior management changes at both group and country operation level.