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Vodafone to Cut 11,000 Jobs

Vodafone announced its intention to lay off 11 thousand employees.

Vodafone to Cut 11,000 Jobs

Source: Pixabay.com

The process of job cuts in this company will not be of a one-time nature but will be long over time. Layoffs of employees on the planned scale will be carried out over the next three years. The corresponding decision was made as part of the creation of a program to simplify the telecommunications giant, initiated by the new executive director.

After the full implementation of the layoff plan, the company’s global workforce will be reduced by 10%. Also, this process will affect employees of the headquarters of the telecommunications giant in the UK.

Margarita Della Valle, who is the chief financial officer and the new CEO of Vodafone, says that the company’s recent performance has not been good enough.

Currently, the total number of employees of the firm in the UK is 12 thousand people. They work in seven offices, including the Berkshire headquarters. The global workforce as of last year was 104 thousand people.

The telecommunications giant is currently facing negative external factors of an economic nature. For example, electricity bills have increased. This is an increase in one of the items of expenses and a decrease in the profit indicator. There was also a drop in the company’s sales in Germany, its main market. In this regard, the situation is not much better in Italy and Spain.

Matt Britzman, an analyst at the investment firm Hargreaves Lansdown, says that the deterioration of indicators in the markets of European countries may be the result of a decrease in customer satisfaction with the quality of the firm’s work.

According to industry watchdog Ofcom, Vodafone’s broadband service in the UK in early autumn last year was the second most complained about by consumers. In April, broadband services were unavailable to approximately 11,000 UK customers due to a glitch in the problem.

Della Valle says that in order to improve the quality of the company’s activities, it is necessary to change. She also stated that her priorities are growth, simplicity, and customers. According to her, the competitiveness of the company will be ensured by simplifying the organization.

The firm reported a slight year-on-year increase in global sales to 45.7 billion euros and a drop in pre-tax profits. A drop in cash flow is also recorded.

Former Vodafone boss Nick Reed decided to resign last December due to concerns about the results of activities. During the four years of his leadership, the value of the company’s shares has significantly decreased.

Victoria Sholar of Interactive Investor, a stock trading platform, says that Vodafone shares are currently at a price level that is the lowest since the late 1990s. In her opinion, the firm should focus on reducing costs, restructuring its strategy in Germany, and opportunities for mergers and acquisitions.

As we have reported earlier, LinkedIn Cuts 700 Jobs and Closes China App.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.