Vodafone to cut 11,000 jobs over 3 years; here's why
Vodafone layoffs: Vodafone's new new chief executive Margherita Della plans to change Vodafone as the Group's latest FY23 performance has not been good enough. His key strategic plans revolve around customers, simplicity, and growth. And 11,000 job cuts is part of this plan.
PremiumBritish multinational telecommunications company, Vodafone is planning to cut a whopping 11,000 jobs while seeking a leaner and simpler organisation. The layoff is part of the telco's strategic plan and will be executed over the course of the next 3 years. Vodafone's new chief executive Margherita Della Valle announced key strategic plans for the Group as the FY23 performance has not been good enough.
In the FY23 financial report, Della Valle said, "I am announcing my plans for Vodafone. Our performance has not been good enough." to consistently deliver he added, "Vodafone must change."
The new chief's priorities are customers, simplicity, and growth.
To execute the change in four years, Vodafone has an action plan already underway, focused around three priorities: Customers, Simplicity, and Growth.
She said, "We will simplify our organisation, cutting out complexity to regain our competitiveness. We will reallocate resources to deliver the quality service our customers expect and drive further growth from the unique position of Vodafone Business."
To achieve simplicity, she said, "11,000 role reductions planned over three years, with both HQ and local markets simplification."
Read here: Vi shares rise despite pulling factors; details on Vodafone Group's earnings, dividend, outlook here
Further, she added, “We will be a leaner and simpler organisation, to increase our commercial agility and free up resources."
In the case of customers, Vodafone has reallocated significant investments in FY24 towards customer experience and brand. To win in consumer markets, Vodafone will refocus on the basics and deliver simple and predictable experience its customers expect.
Also, in regards to growth, Vodafone has a Germany turnaround plan, continued pricing action, and strategic review in Spain. The chief said, "We will focus our resources on a portfolio of products and geographiesthat is right-sized for growth and returns over time."
Della Valle said, "We will rebalance our organisation to maximise the potential of Vodafone Business, which continues to accelerate growth, has a unique set of capabilities, and has a strong position in a large and growing market as organisations digitise."
"We will change the level of ambition, speed, and decisiveness of execution. We will have empowered markets focused on customers, scale up Vodafone Business and take out complexity to simplify how we operate," Della Valle lastly added.
Read here: Amazon India layoffs: Tech giant lays off about 500 employees in web services, HR teams: Report
Vodafone reported a slowdown in FY23 which was in line with expectations. The Group's revenue increased by 0.3% to €45.7 billion driven by growth in Africa and higher equipment sales, offset by lower European service revenue and adverse exchange rate movements.
While adjusted EBITDAal declined by 1.3% to €14.7 billion due to higher energy costs, and commercial underperformance in Germany.
However, the Group saw a significant decline in net debt to €33.4 billion, and proforma net debt to adjusted EBITDAaL improved to 2.5x.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
