New Delhi: British telecom company Vodafone has announced that it will cut 11,000 employees from its global workforce over the next 3 years. The decision comes as the company’s shares hit a 2-decade low as it looks to revamp its business structure to improve its competitiveness and grow customers.
The massive layoffs by Vodafone are part of the company’s €1 billion cost-saving plan, which was first announced in November. New CEO Margareta Della Valle outlined her vision for a smaller and simpler organization, with increased business agility and resource allocation.
“Today I am announcing my plans for Vodafone,” said Della Valle, Vodafone’s former finance chief, who was appointed CEO last month. “Our performance has not been good. Vodafone has to change to continue to perform well.’
‘My priorities are customers, simplicity and growth. We will simplify our organization by removing complexity to regain our competitiveness. We will reallocate resources to deliver the quality service our customers expect’, he added.
In response to forecasts of little or no growth in the new financial year, the company has made cost-cutting plans that will include the biggest layoffs in the company’s history, affecting around 11,000 employees.
Vodafone has struggled in recent years and faces competition from rivals such as AT&T and Verizon in the US, China Mobile and China Unicorn in China. The company has been hit by rising costs and a slow rate of customer growth.
The company’s plan is focused on 3 priorities: significant investment in customer experience and brand, planned 11,000 role reductions over 3 years, and a German turnaround plan, continuous pricing action and a strategic review in Spain.
Vodafone was in talks to merge its UK operations with rival Three UK (a company owned by CK Hutchison), with a 15 billion euro ($18.7 billion) deal said to be close to completion.