Lyca to slash London head count to 48 as it reorganises to concentrate on Africa markets

Lyca Group’s London operation will be cut to a skeleton staff of 48 to handle regulatory and compliance issues as part of a reorganisation to streamline its business operations, slash costs and improve global growth.

Lyca’s is consulting with around 300 staff about the job cuts. The UK workforce will be reduced to a core team of around 48 people, focusing on compliance and financial operations requiring local presence. Other functions will be managed from service centres or newly established global hubs.

The transformation focuses on strengthening its presence in Africa, particularly in existing markets like Uganda, through its Lyca MNO. The company also plans to expand into additional countries and launch new digital brands in Spain and the USA.

Lyca 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 organization” to enhance efficiency and competitiveness.

Lyca Group is reviewing its operations to identify opportunities for growth, operational streamlining, and cost savings. The resulting efficiencies will be reinvested into market expansion and customer-focused initiatives.

“Lyca’s strategic reorganisation is a bold step forward, ensuring we remain a leader in delivering affordable, high-quality telecom solutions to our customers globally,” said Premananthan Sivasamy, Deputy Chairman of Lyca Group. “This paradigm shift enhances our efficiency and strengthens our ability to adapt to a rapidly-changing industry, ultimately benefiting our customers, partners, and employees”.

Lycamobile has faced significant challenges related to VAT liabilities. These issues arose from the VAT treatment of customer bundles, which include data, call, and text allowances. Lyca argued that VAT should apply only when customers use these allowances. However, a July 2024 tax tribunal ruled in favour of HMRC, determining that VAT is chargeable at the point of sale, regardless of usage. This ruling affects bundles sold over seven years, with the disputed VAT amounting to £51 million.