Vodafone reportedly planning hundreds of job cuts

Operator Vodafone is looking to shed several hundred jobs mostly in its London HQ, according to a report.

The report comes from the Financial Times, which says ‘two people briefed on the discussions’ told it that the operator was planning a significant round of job cuts.

In November the firm said it was looking to cut €1 billion in costs and raise prices alongside the publication of the telecoms group’s first half 2023 financials, which showed a decline in adjusted EBITDA on the back of a weak performance in Germany.

“We are also announcing today a new cost savings target of €1+ billion focused on streamlining and further simplifying the Group,” said Chief Executive Nick Read at the time. Vodafone’s share price dropped 7% upon the announcement.

Vodafone said in an emailed statement to BNN Bloomberg:  “We are reviewing our operating model, focusing on streamlining and simplifying the Group. We will say more about the changes when we announce our third quarter results on 1 February.”

It also quotes the Prospect union, which apparently has members at Vodafone, as saying it will “ensure that any members impacted by proposed job cuts are treated fairly and consistently.”

Perhaps precipitated by the recent financial difficulties, Read announced he was stepping down from the top job in December, with no permanent replacement named. CFO Margherita Della Valle has been appointed interim Group Chief Exec, and Read will remain available as an adviser to the board for the first quarter of 2023.

There were more management changes yesterday as it was announced CEO of Vodafone Italy Aldo Bisio is set to take on the role of Group Chief Commercial Officer at the operator. This is happening concurrently with some other changes in Europe – Vodafone Spain will join what it terms as the ‘Europe Cluster’ – presumably some sort of internal division – which will report to Europe Cluster CEO, Serpil Timuray. Colman Deegan, CEO of Vodafone Spain, has decided to step down as CEO effective March 31st 2023, and his successor is yet to be appointed.

Sadly for Vodafone staff, a cost saving target of  €1 billion probably always meant job cuts of some description were likley.

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