Vodafone Romania CEO Achilleas Kanaris stated the company’s parent has no plans to exit the market as a repositioning of the unit is commencing.
In an interview with local newspaper Ziarul Financiar, the chief executive denied the group had any intentions to leave Romania but said the government has to do its part in creating a sustainable environment for Vodafone to continue investments.
Instead, Kanaris revealed the company will undergo a “redesign” of its current operating model which will result in some job cuts as the firm chases new revenue streams and diversifies away from providing connectivity as its main source of income.
Kanaris stressed operators in Romania are in urgent need to find new revenue streams as market saturation rises. He noted operators are currently in pricing wars rather than competing through compelling products.
Around 5% of total staff will be affected by the revamp, either being offered new roles or compensation packages.
“We do not expect massive layoffs”, said Kanaris, “we are attacking new sources of growth. Vodafone Group has no plans to leave Romania”.
The Romanian high court found Vodafone Romania guilty of being anti-competitive in 2021 and was fined RON111 million (US$23m), bringing an end to a case that spanned a decade.
Vodafone entered the Romanian market in 1997 as the first GSM network in the country. It merged with Liberty Global’s unit UPC Romania in April 2020.