The new CEO of Vodafone, Margaret of the Valleyannounced that in the next three years the company it will cut 11,000 jobs. A decision that comes during the presentation of the telecommunication group’s results.
Vodafone will cut 11,000 jobs in three years
Margaret of the Valley, who has been the CEO group of Vodafone since the end of April after replacing Nick Read, presented the financial results of the English multinational. And he explains that there will be staff cuts on the horizon.
“Today I announce my plans for Vodafone. Our performance was not good enough. For a constant result, Vodafone must change,” explains the manager. Among the planned actions are: “11,000 staff layoffs, planned over three years“. Something that we will see both in the “headquarters and local markets“.
Vodafone currently counts 104 thousand employeesso the cut will concern pmore than 10% of the group’s workforce. In addition, there will be a “recovery plan in Germany” and “continued price action and strategic review in Spain.
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In 2023 Vodafone sees “performance slowing down as expected”. Adjusted earnings before interest, taxes and depreciation it fell by 1.3% to 14.7 billion eurosespecially for the results in Germany.
Total revenue they grew by 0.3% to 45.7 billion euro, mainly thanks to the great growth in Africa. While in Europe revenues from services are dropped in Germany, Italy and Spain, they mark a global negative of 0.6% just under 38 billion.
Consequentially operating income rose to 14.3 billion and net income was 12.3 billion (not comparable with 2.8 billion in 2022) but above all thanks to the capital gain on the sale of Vantage Towers.
The Italian market, which accounts for 11% of the group’s revenues, fell by 4.2% to 4.8 billion euros, above all due to the “continuous pressure on prices in the mobile sector”.