Vodafone, one of the world’s largest mobile phone companies by subscribers, has announced a major revamp aimed at cutting costs and improving financial performance.
As part of this revamp, the company has revealed that it would be laying off 11,000 workers over the next three years.
Reasons for the revamp:
Vodafone has reported a drop of 1.3% in its annual earnings and has forecasted little or no earnings growth over the financial year.
In light of this, the company has indicated that there is a need to change to improve its financial performance.
According to CEO Margherita Della Valle, the industry’s circumstances and Vodafone’s position within it require a simplification of the company’s operations and the removal of complexity.
Planned job losses:
Vodafone’s planned job losses would be carried out over the next three years, with cuts already announced in Germany, Italy, and at its UK headquarters.
The job cuts aim to cut costs by 1 billion euros (US$1.1 billion) by 2026. The company has confirmed that employees affected by the job losses would receive redundancy packages and support to help them transition to other job opportunities.
It remains to be seen how the company would manage these potential challenges.
No comment yet, add your voice below!