Lyca Group, the parent company of MVNO Lycamobile, has outlined a restructuring plan aimed at streamlining the company's operations and certain business units.
In an announcement this week, Lyca said the realignment will enable it to expand its market presence in Africa, while noting that it will enter new countries as early as this quarter.
The company also revealed it will launch new digital brands in Spain and the US.
Lyca Group operates MVNO services in 22 countries and claims to serve more than 16 million customers worldwide. Founded in 2006 by Subaskaran Allirajah, Lyca specializes in selling pay-as-you-go SIM cards.
“Lyca’s strategic reorganization 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 change not only enhances our efficiency but also strengthens our ability to adapt to a rapidly changing industry, ultimately benefiting our customers, partners, and employees globally."
However, jobs in the UK are set to be lost, with Lyca stating that a "smaller, more specialized team will remain in London to manage certain limited advisory, compliance, and financial functions that require a UK presence."
The firm didn't specify how many jobs will remain in London, but the company's announcement follows reports last month that 90 percent of its UK workforce could lose their jobs, potentially leaving as few as 48.
Lyca said this week that it has kicked off the consultation process with employees regarding the job cuts.
The company has faced a number of challenges in recent years. In the UK, Lycamobile reported a loss of £24 million ($30m) in 2022, the last year for which its accounts are available.
The company has also been locked in a dispute with HMRC over an alleged unpaid £51 million ($64.6m) VAT bill. A tribunal earlier this year ruled in favor of HMRC.
In France, the company was hit with a £8.3 million ($10.5m) fine by a Paris court for money laundering and VAT fraud.
