Vodafone to chop 11,000 jobs in turnaround plan

Vodafone’s new chief govt mentioned she would reduce 11,000 jobs over three years as she set out her plans to simplify the telecoms group.

Margherita Della Valle mentioned the telecoms firm’s efficiency has not been adequate and it should change.

“My priorities are prospects, simplicity and progress. We are going to simplify our organisation, slicing out complexity to regain our competitiveness,” she mentioned.

The expansion plan included a turnaround in Germany, which is its greatest market and continues to underperform, and a strategic overview in Spain.

The job cuts are the most important but on the firm, which employs greater than 100,000 folks.

Vodafone reported a 0.3 per cent rise in full-year income to €45.7 billion over the interval. Its most popular measure of revenue – earnings earlier than curiosity, taxes, depreciation, amortization and particular losses (Ebitdaal) – slipped to €14.66 billion, in step with Metropolis expectations.

Vodafone reduce its free cash-flow forecasts for the present yr. The corporate mentioned it will generate about €3.3 billion of money this monetary yr, in contrast with €4.8 billion within the yr to finish to March. Analysts had forecast a figures of round €3.6 billion.

Over the previous ten years shares in Vodafone have fallen virtually 75 per cent. The FTSE 100 has risen greater than 15 per cent over the identical interval. The shares fell 2 ¾p, or 3 per cent, to 87 ¼p this morning.

On its proposed tie-up of its British enterprise with Hutchison’s Three UK, Vodafone mentioned there might be no certainty that any transaction would finally be agreed.