Vodafone telephony group announces 11000,<> job cuts over three years

2023-05-16T16:37:45.198Z

Highlights: The British telephone group Vodafone will cut 11,000 jobs over three years. The group's poor results in Europe push it to initiate this redundancy plan. Rising interest rates and energy costs do not make the group's job any easier. The operator wants to reduce its costs by 1 billion euros by 2026. A large part of the jobs cut will concern the teams at the London headquarters. The strategy is to focus on Europe and Africa, especially through its subsidiary, Vodacome.

The management of the British telephony group justifies this decision by the desire to try to revive its competitiveness in the face of a performance and a share at half-mast for several years.

Vodafone telephony group announces 11000,<> job cuts over three years

The British telephone group Vodafone will cut 11,000 jobs over three years. AFP/File

Text by: RFI Follow

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The management of the British telephony group justifies this decision by the desire to try to revive its competitiveness in the face of a performance and a share at half-mast for several years.

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Eleven thousand jobs are to be cut, representing 10% of Vodafone's total workforce worldwide, or 104,000 last year. The British telecoms giant remains on good sales in Africa, especially through its subsidiary, Vodacome.

It is the group's poor results in Europe that push it to initiate this redundancy plan. This is in any case the explanation given by the new director general, Margherita Della Valle. In Italy, the decline is minus 3%, it is worse in Spain, with minus 5.4% over one year. In Germany, the group's largest market, the situation is also critical, with operating income down 6% year-on-year.

Focus on Europe and Africa

The restructuring of Vodafone initiated several years ago continues. The strategy is to focus on Europe and Africa. Rising interest rates and energy costs do not make the group's job any easier. The operator wants to reduce its costs by 1 billion euros by 2026. A large part of the jobs cut will concern the teams at the London headquarters.

In recent months, US tech giants in particular have eliminated tens of thousands of jobs. Vodafone announced in early December the departure of the previous leader Nick Read, after four years at the head of the British telecommunications group, in a context of underperformance.

Margherita Della Valle, until then chief financial officer, took over on an interim basis before being confirmed in the position last month. The group's shares were down 3.73% to 86.67 pence around 7:30 GMT on the London Stock Exchange. It was worth almost 200 pence five years ago.

Vodafone telephony group announces 11000,<> job cuts over three years

Vodafone telephony group announces 11000,<> job cuts over three years

Focus on Europe and Africa

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