Vodafone said it planned to eliminate 11,000 jobs over the next three years. file | Photo Credit: Reuters
British mobile phone giant Vodafone said on 16 May it planned to eliminate 11,000 jobs over the next three years as new chief executive Margherita Della Valle seeks a “simpler” organisation.
With reports of flat annual revenue at the group, Ms Della Valle said, “Our performance has not been good enough.”
At 11,000 positions, Vodafone is seen laying off more than 10% of its global workforce, which stood at 1,04,000 employees last year.
“To deliver consistently, Vodafone must transform,” Ms Della Valle said in a statement.
“We will simplify our organization while reducing complexity to regain our competitiveness,” said Ms Della Valle, appointed CEO on a permanent basis in early May after five months as interim boss.
Vodafone’s announcement comes as the global tech sector axes tens of thousands of jobs, including Facebook parent Meta’s, this year as rising inflation weighs down the economy.
Ms Della Valle’s predecessor Nick Read stepped down in early December after a four-year stint because of a sharp drop in the company’s share price.
He left with Vodafone when the conversation ended Merger of its UK operations with rival Three UKOwned by Hong Kong-based CK Hutchison.
Media reports say a 15 billion pound ($18.7 billion) deal is nearing completion.
Vodafone said on Tuesday that group revenue was 45.7 billion euros in its fiscal year to the end of March, almost flat compared to 2021/22.
It said net profit rose from 2.2 billion to 11.8 billion euros, reflecting the part-disposal of Vantage Towers, its European mast division.
“We will become a leaner and simpler organization to increase our business agility and free up resources,” the company said Tuesday.
It also announced “11,000 role cuts planned over three years, with both head office and local market simplification”.
Vodafone, which has more than 300 million mobile customers in Europe and Africa, is focusing on the rapid rollout of 5G in the UK.
It looks to merge its UK operations with Three to expand broadband connectivity to rural communities and small businesses.
The rollout of faster 5G connectivity has been hampered by Britain’s ban on Chinese giant Huawei from joining the technology.
Following Tuesday’s announcements, Vodafone shares fell 2.9 per cent to 87.42 pence in early trading on London’s benchmark FTSE 100 index, which was slightly higher overall.
In late 2022, Vodafone unveiled a blockbuster deal with investment firms GIP and KKR to form a joint venture that will retain its majority stake in Vantage Towers.