Vodafone’s new CEO Margherita Della Valle revealed her plan to reduce the group’s workforce by 11,000 over three years, in order to streamline operations and usher in change. The telecom giant also predicted that earnings for the upcoming financial year would not rise significantly.
Germany, the company’s largest market, has been lagging behind, and this, combined with greater energy costs, is expected to cause a 1.3% drop in core earnings to €14.7bn for the year ending March. Despite this, revenue is estimated to rise by 0.3% to €45.7bn due to an expansion in Africa and higher handset sales.
“We have not been meeting the mark,” Della Valle said, who was confirmed as the permanent head last month. “My focus is on customers, simplicity, and growth. We are going to simplify our organisation, eliminating unnecessary complexity to restore our competitive edge.
Vodafone has already started trimming their staff in various major markets, including 1,000 in Italy this year and an estimated 1,300 in Germany. In terms of the prospective joining of their British business with Hutchison’s Three UK, Vodafone made no comment on the subject, but noted that no assurance can be made that a deal will be reached.
