Vodafone has recently on-boarded its new CEO, Margherita Della Valle, and right after the appointment the company has announced its plans to streamline its strategies. Amid this restructuring, the telecommunication giant has announced that they’ll be cutting their staff by 11,000 employees. The reduction will happen over a period of the next three years.
The recent restructuring is believed to be one of the largest layoffs in the telecom industry. However, the decision is said to be taken in pursuit of a ‘simpler’ organisational structure, as the company anticipates little to no earnings growth in the upcoming financial year.
As per media reports, Valle has emphasised the need for change within the company stating that it’s past performance has been inadequate. This reduction plan will help the organisation to simplify its functional processes, eliminating complexities to regain competitiveness. Additionally, the company will also relocate its resources to ensure high-quality service delivery expected by customers.
Vodafone has recently implemented job cuts in various significant markets, with 1,000 job reductions in Italy earlier this year, and a media report indicating potential cuts of around 1,300 jobs in Germany. Regarding the potential merger of its British business with Hutchison’s Three UK, Vodafone stated that there is no guarantee that an agreement will ultimately be reached.
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