Vodafone to Cut 11,000 Jobs in Restructuring

Vodafone to Cut 11,000 Jobs in Restructuring

Vodafone Group chief Margherita Della Valle demands changes after conceding the company’s performance has not been good enough. She has also laid out a strategy revamp which will include 11,000 job cuts over the next three years.

In a full year and fiscal 4Q23 earnings statement, Della Valle set out a new roadmap, following a strategic review over the last five months. The CEO stated the circumstances of the industry and Vodafone’s position within it requires them to change.

It will target four key areas: a rebalance of the organization to maximize the potential of Vodafone Business; wins in the consumer markets; a leaner and simpler organization; and focusing resources on a specific set of products and geographies. An action plan is already underway covering three priorities: investment in customer experience and brand; simplicity through the job cuts; and targeting a turnaround in struggling markets in Germany and Spain.

The job cuts comprise around 10% of Vodafone’s workforce and affect the UK and local markets, with the initial axe falling in Germany and Italy. The company had around 104,000 staff at the end of 2022. Della Valle had already been rumored to be planning cuts in Italy and mulling the future of its Spain unit, as part of a wider cost-cutting exercise.

Fiscal Q4 revenue stood at €11.1 billion, down from €11.4 billion in the same period of fiscal 2022. Full-year revenue was flat at €45.7 billion, as growth in Africa and higher equipment sales were offset by the lower Europe service revenue and adverse exchange rate movements. Net profit rose from €2.8 billion to €12.3 billion, largely due to a one-off gain from the sale of a stake in Vantage Towers.

Vodafone’s proposal to acquire rival 3 UK is progressing but it is not there yet, Della Valle said. Press speculation in recent weeks suggested an agreement was close, but the executive said it will take as long as it takes to get a good deal.