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Vodafone’s new boss Margherita Della Valle has stated that they are planning to cut 11,000 jobs over the span of next three years to simplify the telecoms group. She also revealed that this move is necessary as the forecast suggests a decline of 1.5 billion euro in free cash flow this year.
Della Valle, who has been appointed permanently last month, stated, “Our performance has not been good enough.” She believes that cutting out the jobs will simplify her organisation and help regain its competitiveness. She also mentioned that her priorities are “customers, simplicity and growth.”
The decision to cut the jobs is the biggest in the history of the company, which currently employs around 100,000 people.
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Vodafone said it would generate about 3.3 billion euros of cash this financial year, compared with 4.8 billion euros in the year to end-March it reported on Tuesday.
As per the reports, the company’s biggest market, Germany, has been underperforming, which combined with higher energy costs resulted in a 1.35 decline in group core earnings to 14.7 billion euros for the year to end-March, missing its own guidance. On the other, Africa has registered growth in the sales which allow the company to have 0.3% rise in revenue to 45.7 billion euros.
Recently, Vodafone has cut jobs in several of its big market such as Italy by 1,000 and was looking forward to shed over 1,300 jobs in Germany.
