Margherita Della Valle, the new CEO of Vodafone, has revealed intentions to streamline the telecoms giant Vodafone plans to slash 11,000 staff and expects flat revenue over the next three years as it anticipates modest to negative profit growth for the upcoming fiscal year.
While revenue climbed by 0.3% to €45.7 billion ($53.7 billion) because of increasing handset sales in Africa, its biggest market, Germany, underperformed. The elimination of jobs will be done in an effort to simplify the organization and boost competitiveness.
Margherita Della Valle, the new CEO of Vodafone, said that she will eliminate 11,000 positions over the course of three years in order to streamline the telecoms firm, which she claimed “must change” since it anticipated little to no profits growth for the upcoming fiscal year.
According to the company, its largest market, Germany, was underperforming, which coupled with rising energy prices would cause group core profits to decrease by 1.3% to 14.7 billion euros for the year ending in March, in line with market estimates.
However, it managed to eke out a 0.3% increase in revenue to 45.7 billion euros thanks to growth in Africa and increased handset sales.
After being given a permanent position last month, Della Valle stated, “Our performance has not been good enough.”
“Customers, simplicity, and growth are my top goals. In order to recover our competitiveness, we shall streamline our organizational structure and eliminate complexity.
Regarding the rumored merger of its British operations with Hutchison’s Three UK, Vodafone stated that there could be no assurance that a deal would finally be reached. It made no additional remarks about the discussions.
To reach simplicity, Margherita Della Valle said, “11,000 role reductions planned over three years, with both HQ and local markets simplification.”
The new chief said, “we will rebalance our organization to maximize the potential of Vodafone Business, which continues to accelerate growth, has a unique set of capabilities, and has a strong position in a large and growing market as organizations digitize.”
On Monday, telecom equipment manufacturer Ericsson announced the conclusion of a charge consolidation plan for telco Vodafone Idea Ltd., substituting Ericsson charge as the sole online charging option in India. In order to improve customer experience, life cycle management, product modeling, configuration, features, and functionalities, VIL has now reduced its prepaid charging stack.
