The layoffs are part of a larger $1.1 billion dollar cost-cutting effort
Vodafone is planning massive layoffs as part of a $1.1 billion dollar cost-cutting effort, reported the Financial Times. Several hundreds of jobs are on the chopping block, and according to sources, most are located at the company’s London headquarters.
Vodafone has roughly 104,000 employees around the world, and recently has faced pressure from investors to rein in its expansive business following poor performances from many of its global units. The Financial Times also cited additional pressures that have hit the telecommunications industry at large, such as increasing energy prices and interest rates.
After revealing disappointing profits in the first half of 2022, Vodafone announced in November that it would cut more than $1 billion in costs by 2026. The poor profits, said the company, stemmed from a weak performance in Germany, which is its largest market.
“We are taking a number of steps to mitigate the economic backdrop of high energy costs and rising inflation. These include taking pricing action across Europe, whilst at the same time supporting our most vulnerable customers and driving energy efficiency measures across the business,” said CEO Nick Read, adding that Vodafone is “reviewing [its] operating model, focusing on streamlining and simplifying the group.”
In early December, Vodafone announced that Read, who had been CEO for four years, would be stepping down at the end of the year. The company noted that Read will remain on as an adviser to Vodafone’s board of directors through the end of March, 2023. During his time as chief executive, Vodafone lost more than 40% of its value, and has been blamed by some for the company’s failure to secure critical deals in its weaker markets.
CFO Margherita Della Valle is currently serving as interim CEO until a permanent replacement is found; she will continue as CFO as well.
