Vodafone apparently plans to lay off hundreds of employees

According to reports, telecommunications giant Vodafone wants to lay off several hundred employees. The company’s goal is to reduce its costs by around one billion euros. In particular, the headquarters of the Vodafone Group in London seems to be affected.

In November 2022, Vodafone announced that it wanted to save around one billion euros in costs by 2026. The reason for this is that the company’s profits fell in the first half of the year. This is partly due to Vodafone’s weakening business in Germany.

Vodafone wants to cut hundreds of jobs

As the Financial Times Now, citing insiders, the telecommunications giant wants to lay off hundreds of employees. The plans would again involve the largest job cuts in years.

In order to reduce costs and improve stuttering performance, the Vodafone Group wants to cut staff at its London headquarters in particular. This was reported by two people familiar with the company. Opposite of Financial Times said Vodafone:

We are reviewing our operating model with a focus on streamlining and simplifying the group. We’ll have more to say about the changes when we report our third quarter results on February 1st.

Energy prices and rising interest rates are causing problems for Vodafone

Vodafone employs around 104,000 people worldwide, 9,400 of them in Great Britain alone. However, the company has had difficult years. Because above all the rising interest rates and energy prices drove up the costs of the group.

The company has also come under pressure from a number of investors over the past year. Activist investors like Cevian Capital even tried to break up the group and decentralize its business model. Nick Read, the former CEO of Vodafone Group Nick Read then announced his resignation on December 5, 2022.

However, there is no permanent successor yet. CFO Margherita Della Valle is currently also temporarily in charge of the group at management level. The effects of the company’s current austerity measures on Germany are currently unclear.

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