Vodafone could cut jobs as part of €1bn cost-savings plan
MOBILE phone giant Vodafone has unveiled plans to cut costs by one billion euros (£880 million) which could lead to jobs being lost.
The company said it will streamline and radically simplify the group, and accelerate the digitalisation of its operations.
Vodafone’s chief executive Nick Read said: “In terms of redundancies, of course, when we drive efficiency, product improvements and digitisation, there are impacts on some job roles.
“But we are also creating jobs in other areas, such as Devops, tech development and software engineers, which are growing significantly.
“We are growing in a number of areas but obviously there will be efficiencies in other activities.”
Mr Read would not comment on specific job cuts or clarify which locations redundancies could occur.
He also said that the network will take “pricing action” across Europe to mitigate against high energy bills and rising inflation, meaning prices could go up for customers.
Vodafone has already implemented price changes in 12 out of 13 European markets, including raising contract prices, reducing promotional discounts and linking prices to inflation.
Mr Read said: “I think we need to take a step back because our industry has faced a decade of deflation, and we are facing significant negative impacts on inflation and energy.
“So price is a key component of what we have to do, like every other sector that is making price increases.
“We are talking £1 or £2 a month on the typical bill.
“If you draw a comparison to mortgages or filling a tank of fuel for a car, I would say for what we offer, we are giving tremendous value.”
It comes as the Berkshire-based mobile network said its adjusted earnings dipped by 2.6% in the first half of its financial year, driven by commercial underperformance in its largest market, Germany, and a one-off legal settlement in Italy.
It saw a modest rise in revenues, by 2%, to 22.9 billion euros (£20.1 million), up from 22.5 billion euros (£19.7 million) in the same period last year.