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Digicel’s corporate reshuffle
A file photo of the Digicel building
Business, Business Observer
Karena Bennett | Senior Business Reporter | bennettk@jamaicaobserver.com  
February 16, 2025

Digicel’s corporate reshuffle

Decentralisation move triggers job cuts across multiple markets

Digicel Group is undergoing a significant restructuring that will see a shift in its corporate framework, with job losses confirmed across several markets, including Jamaica, Trinidad, Haiti, and the United States.

The telecoms provider, which recently emerged from a complex debt restructuring, has described the latest move as part of a long-term strategy to decentralise decision-making and sharpen its competitive edge.

The company confirmed the redundancies in a statement following queries from the Jamaica Observer, but remained tight-lipped on the scale of the cuts.

“The pace of change in our hyperconnected world is furious, and the onus is on us to evolve in real time to ensure we remain relevant and competitive,” Digicel said, adding that it has spent months reassessing its structure to build a “lean telco” model focused on “superior value creation”.

The restructuring raises questions about the balance between operational efficiency and financial necessity. Digicel insists that the changes are designed to empower local markets by reducing centralised corporate overhead. However, against the backdrop of the company’s recent financial overhaul — which slashed US$1.7 billion from its debt load and cut annual interest expenses by US$120 million — the timing suggests a broader effort to rein in costs.

While restructuring at the corporate level may appear distant from the average consumer, such moves often signal deeper shifts in business priorities. The extent to which this decentralisation translates into improved service delivery or greater financial resilience remains to be seen.

The company acknowledged that roles at the Group level have been affected but stressed that they are spread across multiple territories, including Cayman, El Salvador, St Lucia, and the US. It also confirmed that a consultation process is currently underway, indicating that the final impact may not yet be fully realised.

Credible sources close to the company on Friday told the Sunday Finance that much of the company’s local marketing team has been affected by the restructuring, but the telco hasn’t confirmed those details. It has pledged to support affected employees and ensure compliance with local labour laws.

“As always, we are committed to assisting our people through this period and to ensuring they are treated with the utmost dignity and respect through the process. Likewise, we will of course honour our commitments to them in line with local labour laws and practices,” Digicel said.

“We would also like to take the opportunity to say thank you most sincerely to those that may leave the business for sharing their talent, hard work and dedication with us,” it continued.

Decentralisation has long been a strategy for multinational telecoms providers looking to enhance agility and market responsiveness. By pushing more control to local operations, companies can theoretically reduce bureaucracy and improve service efficiency. Yet, in practice, such shifts can also lead to workforce disruptions and organisational friction, particularly if roles that provided strategic oversight are eliminated.

Digicel’s decision to decentralise follows an era of heightened financial scrutiny, where telecoms operators are under pressure to maintain profitability while investing in next-generation networks. The company’s deep-seated presence in emerging markets, where margins can be tight and economic volatility high, means that any cost-cutting efforts are likely to be met with investor interest.

While the company has said that no further comments will be made, its restructuring strategy is expected to shape its next phase of growth.

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