As part of a turnaround plan to turn around the telecom company’s fortunes after years of underwhelming performance, Vodafone announced on Tuesday that it would eliminate 11,000 positions over the course of three years.
Who will be affected?
The firm’s UK headquarters and operations in other nations would be impacted by the job layoffs, added (VOD) in a statement. In London, shares fell by more than 4%. Margherita Della Valle, the CEO, stated that “our performance has not been good enough.” “In order to regain our competitiveness, we will simplify our organization and eliminate complexity.”
In 2000, Vodafone acquired Germany’s Mannesmann in the largest takeover in history to become the world’s largest mobile telecom firm. Over $190 billion was spent on the transaction. Globally, Vodafone has 104,000 employees, according to its most recent annual report. It is a significant supplier of mobile networks outside of the United Kingdom in countries including Germany, Spain, Italy, and several regions of Africa.
Vodafone plans to cut 11,000 jobs over Three Years;
The Strategic Reorganization
After over 30 years with the company, Della Valle was selected for the position three weeks ago. She stated that her priorities are “customers, simplicity, and growth.” According to McKinsey, European tAs part of a turnaround plan to turn around the telecom company’s fortunes after years of underwhelming performance, Vodafone announced on Tuesday that it would eliminate 11,000 positions over the course of three years. have performed particularly poorly over the previous ten years, giving stockholders poorer returns than those in the US. In a competitive industry, Vodafone’s performance in comparison to peers had “worsened over time,” according to Della Valle in a video on its website.
“Our performance relative to our major competitors in our largest markets has not been good enough, and we know that this is strongly connected to the experience of our customers not being good enough,” she continued. Over the previous year, shares of Vodafone have decreased by 28%. As part of its turnaround strategy, Vodafone would devote additional resources to Vodafone Business, which caters to corporate clients and is expanding across nearly all of the company’s European regions.
The strategic reorganization takes place as Vodafone’s financial reports revealed that revenue for the year ended in March increased by just 0.3% to €45.7 billion ($49.8 billion). Due to high energy prices and poor performance in Germany, adjusted earnings decreased to €14.7 billion ($16 billion), below the company’s own expectations.