Vodafone to cut 11,000 jobs as part of turnaround plans

vodafone europe telecoms margherita della valle job cuts

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Vodafone is undergoing a major restructuring effort under its new CEO, Margherita Della Valle.

The company has announced plans to cut 11,000 jobs across Europe as part of its turnaround strategy. Della Valle stated that the company’s performance has not been up to par and that changes are necessary for Vodafone to consistently deliver.

One area where Vodafone sees potential for growth is its business segment. Despite representing only 27 percent of group service revenue, the segment showed a 2.6 percent growth in service revenue during the last fiscal year.

Vodafone believes that by emphasising its business operations, it can tap into the growing market for high-speed, low-latency connectivity and cloud-based applications. Additionally, the demand for 5G services is on the rise and Vodafone aims to position itself as a leading provider of these services.

On the consumer side, Vodafone faces significant challenges.

The company experienced a decline of 1.1 percent in service revenue in its European Consumer operations, which account for 51 percent of group service revenue. To address this, Vodafone plans to refocus on providing a simple and predictable customer experience, investing in customer care and journeys, and reinvigorating the brand. The company has allocated significant funds towards improving customer experience and increasing brand promotion.

In addition to these strategic changes, Vodafone aims to create a more agile corporate structure. This includes cutting approximately 11,000 jobs across Europe over the next three years. The job cuts will occur at both the head office and individual operating companies. The restructuring is part of Vodafone’s efforts to simplify its organisation, reduce complexity, and regain competitiveness.

Vodafone’s full-year financial results showed a slight increase in group revenue, driven by strong growth in Africa and higher equipment sales. However, adjusted earnings before interest, tax, depreciation, and amortisation after leases (EBITDAal) declined by 3.6 percent to €14.67 billion.

Della Valle emphasised that her priorities are customers, simplicity, and growth. She believes that by focusing on these areas and reallocating resources, Vodafone can provide the quality service customers expect and drive further growth, particularly through its business operations.

The telecommunications industry is highly competitive and Vodafone’s restructuring efforts reflect the need to adapt to changing market dynamics and customer expectations.

By streamlining its operations, prioritising customer experience, and capitalising on the growing demand for business services and 5G connectivity, Vodafone aims to position itself for success in the evolving telecommunications landscape.

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