Vodafone to cut 11,000 jobs as CEO says performance 'has been unacceptable'
16 May 2023, 09:55
Vodafone has announced it will cut thousands of jobs over the next three years as part of plans to streamline the business and increase profitability.
The Telecoms company has confirmed it plans to cut one in 10 jobs following a 1.3% drop in full year-earnings to £12.8 billion, as its new CEO said performance “has not be good enough”.
Vodafone has yet to confirm the details of who will be affected, but it is understood the Berkshire headquarters will be among those impacted.
The company employs just over 100,000 staff globally, and plans to cut 11,000 of those.
CEO Margherita Della Valle, successor to former CEO Nick Read as of last month, said: “Our performance has not been good enough.
"My priorities are customers, simplicity and growth. We will simplify our organisation, cutting out complexity to regain our competitiveness."
She also told the Standard: “It’s coming out of three areas. On top of taking out oversight layers in our HQ, we are also stopping our shared operations where we have an unproven business cases, and we are simplifying our markets.
“Let’s face it. Our performance in Germany has been unacceptable – I think that’s been clear.”
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Danni Hewson, a financial analyst at AJ Bell, told LBC: “Earnings are flat and because of all that they are now looking to make huge changes to simplify the organisation.”
The company forecast little or no growth for the current financial year – its biggest market in Germany underperforming the most, followed by Spain.
Matt Britzman, equity analyst at Hargreaves Lansdown, said of the company: "Lacklustre performance has been something markets have come to expect from Vodafone of late, and full-year results didn't buck the trend.
"Higher energy costs and continued weakness in Germany meant underlying cash profit came in below the recently downgraded company guidance.
“New CEO, Margherita Della Valle, has been very vocal about the host of challenges she's facing in her new role - the honesty is refreshing but not enough to keep shares from falling on the news.”
