Lyca reorganises but promises continuing investment in Africa

Depending on which news outlet you access, the latest strategic move by British multinational corporation Lyca Group either implies a sharper focus on markets like Africa, a cost and staff-cutting exercise in the face of a number of economic challenges, or both.

The group, known in the UK for MVNO Lyca Mobile, has announced a “strategic reorganisation” that it says aims to “drive efficiency and foster global growth".

In a statement Lyca said that, in response to intensifying competition and rising costs across the telecom sector, it has undertaken a comprehensive review of its operations and business areas to identify opportunities for growth and efficiency. By leveraging its well-established service centres, Lyca aims to enhance its digital capabilities, streamline operations and achieve substantial cost savings, which, it says will be reinvested in market expansion and customer-focused initiatives.

Lyca explains that it will consolidate its global business services by expanding current service centres and establishing new hubs. Country-specific operations will transition into a “leaner, sales-focused organisation” to enhance efficiency and competitiveness.

As part of this reorganisation the company says it will continue to invest in mobile operator operations in Africa – it has a mobile operation called Lycamobile Uganda – and intends to expand into new countries as soon as Q1 2025, including the launch of new digital brands in Spain and the USA.

However, according to the Mobile News website, Lyca plans to slash its London head count to 48 as it reorganises to concentrate on African markets and is consulting with around 300 staff about the job cuts.

It is also faced with ongoing tax and auditing issues in the UK and France, the fallout from a serious cyberattack that may have involved personal data, and post-tax losses in revenue.