Digicel to cut one in four jobs in restructure
Digicel Board Chairman Denis O’Brien
(CNS Business): Digicel is a planning to cut a quarter of its workforce over the next 18 months, the firm said in a statement on its website. The company claims it is reorganising to be “fit for purpose for 2030 and beyond” and this means a 25% reduction of the global workforce over the next 18 months, with the first step in the process being the offer of an Enhanced Voluntary Separation Programme opening on 1 March. Here in Cayman, Digicel employs over 60 people, most of whom are local workers; just 4% are work permit holders.
It’s not clear how the restructuring will impact Cayman but the telecoms group, chaired by billionaire businessman Denis O’Brien, said it is restructuring the firm to a small number of regional hubs in the Caribbean, Central America and the Pacific with back office centralised functions.
The firm also said it had signed a global partnership agreement with telecommunications provider ZTE.
Despite cutting jobs and restructuring to cut expenses, the company said it has invested over $1.65 billion in upgrading its networks and platforms and rolling out broadband fibre over the last three years.
CEO Colm Delves, said, “We are building Digicel for 2030 and beyond. Our transformation programme sees us taking the bull by the horns and daring to be different by challenging the status quo and by innovation-led growth. That’s what we are known for and that’s what we will continue to be known for into the future.
“Over the years, we have built a great company with a proud legacy of democratising communications and making an impactful contribution to countries and people across the globe,” he added.
Category: Caribbean Business, World Business
Digicel are essentially finished. Unfortunately, they missed the boat on owning their own fibre-optic network.
They may try to reinvent themselves as an IT services/mobile provider, but their cash position will prevent them.
I predict a takeover soon, probably hostile, from someone like Movil and Carlos Slim.
Why on earth would anyone want to do a hostile takeover of a business that is losing money? If Carlos Slim wants a license to operate in Cayman all he has to do is apply for one.
How do we get the wireless companies to stop selling our mobile numbers to advertisers and then charging customers for unwanted promotional text messages they themselves are soliciting?
ICTA where are you?
Cox Lumber, BuildersReg, FreeRoses from Celebrations, GinosPizza…that’s just this month!
#howtoannoyyourcustomers
The Enhanced Voluntary Separation Programme is a wonderful idea. It allows the brightest and best who are capable of getting a job elsewhere to take the money and run. Look at how well it worked out for C&W.
How can Digicel claim to be bigger or better than the comp if it is cutting jobs? If you are growing and improving, shouldnt you be adding jobs?
crap company and services
This article is suggesting that the’s 2.4 people not on work permits at Digicel? Suggest CNS check their facts. Digicel are a shoddy company trying to be too aggressive in strategy.
Digicel’s debt load is simply not sustainable. The main reason why their launch of an IPO in NYC a year ago was cancelled. Investors and analysts looked at the company finances and turned away. Company will be gone in three years at current rates of telecommunications growth and then we will be stuck with mother FLOW and increases in rates on island. Afraid it will get worse before it gets better.
Ah…so expecting the quality of service to improve? I don’t think so. One does wonder however, how it could get any worse…but I am sure they will prove me wrong.
The sign of a booming economy, Mr. Premier?
If you could read you would see this is Digicel everywhere and not just Cayman..and Digicel along with its previous owner were recently taken over by an Irish bandit…
Your statement is incorrect. The company was not/not recently taken over. The company was founded more than 20 years ago by your so called Irish bandit and has always been owned by him. He now finds himself in a massive debt hole which has been widely reported on in the Irish business press.
Now you are going to find out the practical result of making hiring employees in Cayman so expensive in a virtual world where functions can be done remotely, especially in IT based companies like telecommunications.
Diogenes, what we are finding out is what happens when one gets too greedy and overextends in an effort to cripple the competition. There is a good reason why Cable and Wireless (Flow) has lasted for so long, and not just in Cayman. I have always wondered just how much it was costing them to offer some of the deals that they have offered.Remember nothing in the world is really free, someone has to pay the piper.