largest wireless operator MTN Group Ltd. has announced plans to reduce its workforce to drop cost and tackle the falling numbers of subscriber in South Africa.

Contractors and permanent workers across the group’s 22 operations in Africa and the Middle East are expected to be under review, Chief financial officer Brett Goschen said on Wednesday.

According to MTN SA’s human resources executive, Themba Nyathi, about 15 percent of MTN SA’s staff are contractors who perform, among others, outsourced functions.

“As we rationalise and automate certain areas of our business in pursuit of operational efficiencies, some contract functions will naturally become redundant while others will be carried out in-house.”

The group also wants to reduce its spending across managed services, distribution, supply chain and procurement as well as labour costs.

Despite the growth recorded in its bullish African markets – Nigeria and Ghana, MTN’s South African subscribers continue to dwindle admist stiff competition in Africa’s largest economy.

South African customer numbers declined slightly after weak consumer spending and competition on pricing hampered business in the country. Its total subscriber base for South Africa declined by 600,000 to 25 million in interim results for the six months ended June 2013.

“MTN South Africa felt the effects of weaker consumer demand and was slow to respond to aggressive price competition in both voice and data offerings,” MTN said in a statement.

The Johannesburg-based company’s first-half profit rose 22 percent, exceeding estimates. Group revenue advanced 9.8 percent to R65.2 billion ($6.5 billion) in the first six months of the year while subscribers increased by 6.5 percent to a milestone 201.5 million; the company said.

Group data revenue jumped 36.9 percent to R9bn ($907m)while operating profit tipped to R19.5bn ($2bn) from R19.1bn($1.93b) a year earlier.