Vodafone planning job cuts to deliver €1bn in savings

European telco Vodafone is poised to cut hundreds of jobs, according to the FT. As the company seeks to make inroads into its large debt pile, it is hoping to achieving savings of more than €1bn through headcount reduction. At time of writing the firm employs 104,000 people globally, with more than 9000 located in the UK.

Margherita Della Valle

Vodafone has been under pressure to transform its financial performance for some time, with its share price down almost 30% in the last six months. CEO Nick Read paid the price for the company’s performance, stepping down in December 2022.

A new CEO has not yet been selected, but interim CEO Margherita Della Valle has been tasked with “accelerating the execution of the company’s strategy to improve operational performance and deliver shareholder value”. Aside from the upcoming job cuts, Vodafone has also just finalised the sale of its business in Hungary to local IT company 4iG and the Hungarian state for around €1.7 billion.

At time of writing it is not clear where the axe will fall, but the FT suggests the brunt of the losses will take place in London. In a statement, Vodafone said: “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 February 1.”

Also this week, Vodafone Italy CEO Aldo Bisio was given an expand remit, taking on the role of group chief commercial officer. In Spain, meanwhile, CEO Colman Deegan is to leave his post on March 31, after two years in the job.