Telecom giant Vodafone is set to slash 11,000 jobs over the next three years, equivalent to around 10% of its total workforce. The cuts are part of a plan to “simplify” the company, according to new CEO Margherita della Valle, who said that Vodafone’s performance “has not been good enough.” The job losses will be felt across multiple countries, including Germany and Italy, as well as the UK.
Della Valle, who previously served as Vodafone’s chief financial officer, took up her current role in January 2023 after former CEO Nick Read left abruptly. The CEO stated that her priorities were “customers, simplicity, and growth” and that the company must change to regain competitiveness. However, her appointment was seen as a deviation from the company’s strategy, with analysts expecting an external candidate to “shake things up” following Read’s unsuccessful attempt to revitalize the firm.
Vodafone recently reported €45.7 billion in sales, a modest increase, but pre-tax profits were down, leading analysts to predict a “broadly flat” financial year. The company has also been in talks with CK Hutchinson, parent company of Three UK, about a potential merger that would make it the world’s biggest mobile operator, with around 28 million customers.
In recent news, Vodafone made history by becoming the first UK mobile phone network to switch off its 3G signal in some areas of the country. As the company continues to restructure and simplify its operations, it remains to be seen how this will impact its position in the highly competitive telecoms market.
