Vodafone to cut 11,000 jobs as new chief executive seats out plans to ‘simplify’ business
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Vodafone has announced that it will cut over 11,000 jobs over the next three years as the new chief executive takes the helm.The telecoms giant’s new boss said she hopes to “simplify” the business.
The cuts equal more than a tenth of Vodafone’s current workforce. The decision is said to affect its Berkshire headquarters and other countries. The job cuts follow the announcement in November of a €1bn (£870m) cost savings plan, marking the first big move by the new group chief executive, Margherita Della Valle.
Della Valle, who was previously the company’s finance chief, said: “Today I am announcing my plans for Vodafone. Our performance has not been good enough. To consistently deliver, Vodafone must change.”
She added: “My priorities are customers, simplicity and growth. We will simplify our organisation, cutting out complexity to regain our competitiveness. We will reallocate resources to deliver the quality service our customers expect.”
This comes after its share price slumped to a two-decade record low. The company said it needed to restructure its business to compete against rivals and improve the experience for its tens of millions of customers.
Vodafone currently has around 18 million UK mobile customers and more than one million broadband customers. It has been reported that they are in the closing stages of pushing through a merger with Three to create the UK’s biggest mobile company to compete with rivals.