STC cuts workforce; Mobily capital plan approved

16 Sep 2008

Saudi Arabia’s dominant fixed line and mobile operator, Saudi Telecom Company (STC), has announced plans to lay off 3,000 employees in its domestic market. The redundancies will account for around 14% of its workforce it says. The firm is looking to streamline its operations at home as it continues to seek opportunities for international expansion. ‘We are interested in the Middle East and North Africa in general, but we are looking at North Africa in particular,’ Chief Executive Saud Al Duweish told Reuters. STC paid USD2.6 billion for a 35% stake in Oger Telecom last year, giving it interests in operators in South Africa, Turkey and Romania. The Saudi telco also has equity stakes in ventures in Kuwait and Malaysia.

Separately, Saudi Arabia’s Capital Market Authority has approved a plan by cellular operator Mobily to raise its capital by SAR2 billion (USD533 million), Reuters reports. Mobily will offer stock holders 200 million shares with a nominal value of SAR10, it said in a statement to the stock exchange. The firm is Saudi Arabia’s second largest cellular operator, with just over eleven million subscribers at the end of June.

Saudi Arabia, Mobily (Etihad Etisalat), Saudi Telecom Company (stc)