Ooredoo Oman Restructures Non-Senior Leadership: What This Means for Business Strategy and Growth
Ooredoo Oman Announces Organizational Restructuring
Ooredoo Oman has revealed plans for organizational restructuring focused on non-senior leadership roles as part of its strategic transformation program aimed at enhancing operational efficiency.
In a filing with the Muscat Stock Exchange (MSX), the company detailed that the initiative involves streamlining and consolidating certain roles and activities to better align with its evolving business model, shifting market dynamics, and future investment priorities in digital infrastructure, artificial intelligence, and value-added services.
The estimated cost of this initiative stands at OMR 15 million, which is expected to negatively impact profits for the fiscal year 2025. This amount covers compensation for affected employees as well as other related technical and consultancy expenses. However, the program is projected to yield positive annual financial benefits of approximately OMR 8 million starting in 2026 and in subsequent years. Ooredoo emphasized that its strong retained earnings will enable it to maintain dividend payments in the foreseeable future.
Last week, the Ministry of Labour addressed social media reports concerning the termination of services for 125 employees at Ooredoo. In collaboration with the Telecommunications Regulatory Authority (TRA), the Ministry contacted the company’s management to clarify the situation.
It was disclosed that the company had offered employees the option to resign in exchange for a full salary over a period of 24 months, a proposal that 114 employees accepted while 11 employees declined. The management, along with its labor union and the General Federation of Workers of Oman (GFOW), were invited to the Ministry to negotiate and seek a mutually agreeable resolution regarding this matter.
Special Analysis by Omanet | Navigate Oman’s Market
Ooredoo Oman’s recent restructuring signals a pivotal shift in the telecommunications landscape, creating both opportunities and risks for businesses navigating this evolving market. Investors and entrepreneurs should consider the potential of digital infrastructure and AI-driven services, while remaining cautious about the immediate financial impact of workforce changes. Smart strategies centered on operational efficiency could yield future growth, making now a critical time to reassess investment priorities.
