Saturday, June 10, 2023

Vodafone to cut 11,000 jobs over three years and undertake strategic review in Spain

British telecoms operator Vodafone has announced its intention to cut 11,000 jobs in Europe over three years in an aim to simplify the company’s organisation, which will entail a restructuring plan in Germany and a strategic review in Spain.

“Our performance has not been good enough”, recognized Margherita Della Valle, CEO of Vodafone, in the presentation of the operator’s annual accounts.

In this sense, despite the fact that Vodafone recorded a net profit of 11,838 million euros at the end of its financial year, compared to a result of 2,237 million recorded in the previous year, the company insisted that its accounts reflect a positive impact. Are. Exceptional sale of Vantage Towers.

Thus, the gross operating result (EBITDA) adjusted for rental margin was 14,665 million euros, 3.6% lower than that recorded a year earlier.

Similarly, Vodafone’s revenue for the year totaled 45,706 million euros, up 0.3%, including a 2.4% decline in the last quarter of its fiscal year, to 11,138 million.

Of these revenues, Vodafone’s service billing for the year was 37,969 million, down 0.6%, to 9,242 million, down 3.2% in its fiscal fourth quarter.

Across markets, revenue from Vodafone services in Germany fell 1.6% to 11,433 million in the year, while those in Italy fell 2.9% to 4,251 million and in Spain 5.4% to 3,514 million. In favor of this, total revenue in the United Kingdom was 5,358 million, up 4%.

Similarly, the operator indicated that company revenues in the rest of Europe rose 0.1% to 5,005 million euros, while in the case of Vodacom they rose 4.6% to 4,849 million.

For its part, Vodafone’s net debt at the end of the year had decreased to 33,375 million euros compared to 41,578 million in the previous year.

“Vodafone has to change”, assures Della Valle, for whom the priorities are customers, simplicity and growth. “We will simplify our organization while removing complexity to regain our competitiveness,” he added.

As such, the company has announced its intention to reduce operations in Europe over a period of three years which will affect 11,000 jobs in order to simplify both the headquarters and local markets.

Likewise, it has advanced that it will carry out a restructuring plan in Germany while it conducts a strategic review in Spain.

“We will become a more agile and simpler organization to increase the agility of our business and free up resources,” explained the company, which will focus its resources on a portfolio of products and geographies that deliver growth and profitability over time. is the size.

Nation World News Desk
Nation World News Desk
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