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Sunday, June 11, 2023

Vodafone to Eliminate 11,000 Positions after New CEO’s Criticism of the Company

The UK's largest telecom company has announced plans to reduce certain positions

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UNITED KINGDOM: Vodafone’s financial director Margherita Della Valle has stated that the company’s performance has not been good enough. The company employs 12,000 people in the UK, spread out across seven locations, including Berkshire, where the company is located. The reductions account for almost a tenth of its global workforce.

The UK’s largest telecom company has announced plans to reduce certain positions from its global workforce due to higher energy costs, lack of competition, and declining sales in its largest market, Italy, Spain, and Germany.

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Matt Britzman, an analyst with Hargreaves Lansdown, believes that falling customer satisfaction levels in those regions can be linked to the main reason.

In the three months leading up to December, complaints about Vodafone’s broadband service in the UK were the second most of any major operator. A glitch that affected 11,000 UK consumers caused it to lose its goodwill in April.

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Della Valle, Vodafone’s new CEO, stated that the company must evolve in order to consistently deliver. To regain competitiveness, the company must simplify its organisational structure and eliminate complexity.

After reporting a small increase in full-year revenues and a decline in pre-tax earnings, it announced job layoffs.

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Nick Read, the previous CEO of Vodafone, resigned in December due to issues with the business’s performance. His four years in command saw a significant decline in the company’s share price.

Vodafone’s business has been “lacklustre” in recent years, according to Britzman. Della Valle is open about the difficulties facing the company. Vodafone’s stock dropped 5% on Tuesday.

Della Valle must focus on cost-cutting, the turnaround plan in Germany, and M&A opportunities abroad and in the UK to increase the company’s market share, discover efficiencies, and strengthen its pricing power.

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