Drive2011 will help streamline the company's core operations and services, and assist in continual assessment of Zain's growth plan. Zain Group CEO Saad Al Barrak said the new program will realize significant efficiencies, allowing Zain to provide communication services such as voice, SMS (short message service) and data at an optimum cost as the company moves to expand.
Drive2011 is expected to improve Zain's operating margin by 5 percent within 12 months and provide the ability to capture future growth in markets where Zain operates, Al Barrak said.
Zain operates in 23 countries in Africa and the Middle East, including Kenya, Zambia, Malawi, Bharain and Jordan, with a workforce of more than 15,000. However, the new program will result in the loss of 2,000 jobs, or a 13 percent workforce reduction across the board.
"Zain Group will align its head office and operations structures in accordance with the new operating model. This will result in the reduction of workforce across the board," Al Barrak said.
While Zain is viewed as being well on track to becoming a top global operator, as the company's investments in merging markets have positioned it to ensure long-term growth, it is the first mobile service provider in Africa to announce job cuts. Communication experts believe that the move is aimed at withstanding the global economic crisis that has heavily affected many countries on the continent, resulting in job losses as many companies are closing.
Drive2011 comes on the heels of a string of products and services being launched by the company, including the mobile commerce service, launched in East Africa in February this year, which has so far attracted thousands of customers. The service is operational in Kenya and Tanzania and will shortly be launched in Uganda before being rolled out across all Zain's operations.
A mobile banking service offers access to full banking services, money transfers and mobile airtime, and the ability to pay utility bills.
The company has also launched a modular business model with four pillars focusing on harmonization of services, standardizing operations, centralizing key processes and increasing outsourcing opportunities where possible. That means that the company is changing all of its business models to adapt to the changing business environment globally.
Zain intends to spend more than US$1 billion on its operations in Africa alone.
Meanwhile, Zain has announced that its subscriber base has grown to 64.7 million across Africa and the Middle East as of March 31. Al Barrak said despite the challenges imposed by the global economic crisis and the competitive markets in which the company operates, Zain continues to grow.