Zain Group to restructure operations

By Macharia Kamau

Kuwaiti based mobile phone operator Zain Group has announced plans to restructure its operations.

The company will also adopt a new strategy aimed at making it to the list of top ten global telecommunication companies in the world by 2011.

The new strategy will see the company lay off 13 per cent of its employees across its 22 operations across Africa and Middle East. This will see a reduction of Zain’s current 15,500 global workforce by 2,000.

It comes hot on the heels of the restructuring of its Kenyan operation that claimed over 140 employees. In a statement after a strategic meeting of senior Zain executives from all its operations yesterday, the company said it would align its head office and operations structures in accordance with the new operating model.

The restructuring programme, dubbed Drive2011, is expected to improve Zain’s operating margin by five per cent in 12 months and provide the company with necessary thrust to capture the future growth potential of the markets in which it operates.

Dr SaadAl Barrak, Zain Group chief executive said the strategy is structured and timetabled approach to maximize efficiency.

"We will create genuine market differentiation of our services to be achieved through a combination of managed outsourcing, centralisation and leveraging capabilities, as well as training and development for our personnel, all of which will improve our operating efficiencies," he said.