Vodafone will axe 11,000 jobs over the next three years as the new chief executive sets out her plans to “simplify” the telco giant.

The cuts equal around a tenth of its global workforce and will affect its UK headquarters and other countries.

Margherita Della Valle, who is also Vodafone’s finance director, said its performance was not good enough.

The firm, which had 104,000 staff worldwide last year, has already out­lined plans to cut jobs in some areas.

The telco giant struggled with higher energy bills which drove up costs and impacted its profits.

It reported weaker sales in Germany, its biggest market, and Italy and Spain where it has struggled to keep pace with rivals.

“Part of that can be tied to falling customer satisfaction levels in those regions,” said Matt Britzman, an ana­lyst at investment firm Hargreaves Lansdown.

Vodafone’s broadband service in the UK was the second most-complained about of any major provider in the three months to December, according to the industry watchdog Ofcom.

It also faced embarrassment in April when a problem knocked out its broad­band services for around 11,000 UK cus­tomers.

“To consistently deliver, Vodafone must change,” said Ms Della Valle, who was appointed as Vodafone’s new chief in January, and is serving as its in­terim finance director until a replace­ment is found.

“My priorities are customers, sim­plicity and growth.

“We will simplify our organisa­tion, cutting out complexity to regain our competitiveness.”

It announced the job cuts after reporting a small rise in full year sales to €45.7bn (FJ$110.2bn) and a fall in pre-tax profits.

To read more, click on this link to access the full article and details: https://eedition.fijisun.com.fj/subscriptionplans

Source: BBC

Feedback: frederica.elbourne@fijisun.com.fj