Vodafone will reduce its staff by 11,000 positions in the next three years, the company revealed in its latest financial results
Vodafone's new CEO Margherita della Valle is looking to “simplify” the organization, and job cuts are part of that plan, as she claims the company’s performance “has not been good enough”.
The cuts are equal to around 10% of Vodafone's entire workforce, with losses set to come across multiple countries, with Germany and Italy confirmed to be affected alongside the UK.
Regaining competitiveness
Previously chief financial officer, Della Valle became Vodafone CEO in January 2023 after former CEO Nick Read suddenly left his post.
"To consistently deliver, Vodafone must change,” she said. "My priorities are customers, simplicity and growth. We will simplify our organization, cutting out complexity to regain our competitiveness."
When Vodafone decided to give Della Valle the position of CEO, analysts saw it as a “deviation” in the company’s strategy, Reuters reported at the time. Analysts were expecting someone from the outside, rather than inside the company, to “shake things up” after Read’s seemingly failed attempt at revitalizing the firm.
The company recently reported €45.7 billion in sales, a small rise, but also reported a fall in pre-tax profits, leading analysts to expect a “broadly flat” financial year for the company.
Vodafone recently confirmed it was in talks with CK Hutchinson, parent comnpany of Three UK, over a merger which could fundamentally change the telecoms landscape in the UK. If the deal comes through, the company will be the world’s biggest mobile operator, counting some 28 million customers.
Vodafone also recently hit the headlines following its move to switch off its 3G signal in some parts of the UK, becoming the first UK mobile phone network to do so.
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