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Vodafone to cut 11,000 jobs as the new boss says firm ‘not good enough’

By Nagasunder in UK Business & Employment News, posted May 16, 2023

The telecommunications giant Vodafone has revealed its plan to cut 11,000 jobs over the next three years as part of its strategy to streamline operations.

The job cuts will affect various countries, including the company's UK headquarters in Newbury, Berkshire.

Margherita Della Valle, Vodafone's new chief executive and finance director, emphasized the need to simplify the organization and improve its performance.

The job cuts represent more than 10 percent of Vodafone's workforce and come as the company aims to address its underwhelming performance.

With headquarters in Newbury and Paddington, Vodafone has already announced job reductions in Germany and Italy.

Ms. Della Valle, who was appointed as Vodafone's new chief in January, told BBC: "To consistently deliver, Vodafone must change.

"My priorities are customers, simplicity and growth. We will simplify our organisation, cutting out complexity to regain our competitiveness."

The decision to cut jobs follows Vodafone's recent financial results, which showed a slight increase in full-year sales to €45.7 billion (£39.7 billion) but a decline in pre-tax profits.

The company also projected earnings would remain largely unchanged in the current financial year.

The departure of former CEO Nick Read in December, prompted by concerns over the company's performance, preceded this announcement.

During his tenure, Read had unveiled cost-saving initiatives targeting approximately €1 billion at Vodafone and signaled the likelihood of job reductions.

The telecom industry has been undergoing significant changes and challenges, including increased competition, technological advancements, and evolving consumer demands.

Vodafone's decision to streamline its operations and reduce its workforce reflects the need to adapt and remain competitive in this dynamic environment.

While job cuts can be disruptive and challenging for affected employees, Vodafone's focus on simplification and regaining competitiveness is essential for the company's long-term sustainability.

The telecommunications sector requires agility and efficiency to meet customers' evolving needs and navigate the rapidly changing landscape.

As Vodafone moves forward with its restructuring plans, it will need to strike a balance between cost optimization and maintaining a skilled workforce capable of driving innovation and delivering exceptional services.

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The company's ability to successfully execute its strategy will play a crucial role in its future growth and profitability within the highly competitive telecommunications market.