Vodafone to Cut 11K Jobs
New boss says firm ‘not good enough’
My priorities are customers, simplicity and growth. We will simplify our organisation, cutting out complexity to regain our competitiveness. Margherita Della Valle Vodafone’s finance director
Vodafone will axe 11,000 jobs over the next three years as the new chief executive sets out her plans to “simplify” the telco giant.
The cuts equal around a tenth of its global workforce and will affect its UK headquarters and other countries. Margherita Della Valle, who is also Vodafone’s finance director, said its performance was not good enough.
The firm, which had 104,000 staff worldwide last year, has already outlined plans to cut jobs in some areas. The telco giant struggled with higher energy bills which drove up costs and impacted its profits.
It reported weaker sales in Germany, its biggest market, and Italy and Spain where it has struggled to keep pace with rivals.
“Part of that can be tied to falling customer satisfaction levels in those regions,” said Matt Britzman, an analyst at investment firm Hargreaves Lansdown.
Vodafone’s broadband service in the UK was the second most-complained about of any major provider in the three months to December, according to the industry watchdog Ofcom.
It also faced embarrassment in April when a problem knocked out its broadband services for around 11,000 UK customers.
“To consistently deliver, Vodafone must change,” said Ms Della Valle, who was appointed as Vodafone’s new chief in January, and is serving as its interim finance director until a replacement is found.
“My priorities are customers, simplicity and growth.
“We will simplify our organisation, cutting out complexity to regain our competitiveness.”
It announced the job cuts after reporting a small rise in full year sales to €45.7bn (FJ$110.2bn) and a fall in pre-tax profits.