OXFORD, United Kingdom—Vodafone and the French-based media giant Vivendi have denied rumors that widespread job cuts are to take place at Vizzavi, their mobile Internet portal joint venture. The two firms, responding to press speculation, said they are committed to the venture and predicted that it would break even by the end of 2003.
Despite these reassuring words, it seems likely that a significant number of Vizzavi’s 800 employees will be asked to leave in an effort to save costs. Industry analysts claim the mobile portal has not been living up to shareholders’ expectations, and Vivendi may have begun questioning Vodafone’s long-term commitment to the project.
The company has admitted that it has had various technology problems—the prime reason behind missing its 2 million registered subscribers target in June. Philippe Germond, head of Vivendi’s telecom and Internet operations, also confirmed that a number of developer teams could leave Vizzavi, but did not specify how many of the company’s employees might be affected.
