Vodafone has announced plans to cut 11,000 jobs as part of a turnaround plan for the company’s new CEO, Margherita Della Valle.
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Vodafone Shares fell 4% on Tuesday after the British telecommunications company announced plans to cut a record number of jobs and forecast steady profit growth.
“Our performance has not been good enough. To be consistent, Vodafone needs to change,” newly appointed CEO Margherita Della Valle said in a candid statement on Tuesday.
Vodafone said it would cut 11,000 jobs over three years, out of a total workforce of just over 100,000. This is the biggest round of cuts in the company’s history, reports Reuters.
“My priorities are customers, simplicity and growth. We will simplify our organization, reducing complexity to regain our competitiveness. We will reallocate resources to provide the quality service our customers expect and drive growth through unique position of Vodafone Business,” Della said Vallée.
Vodafone reported revenue of 45.7 billion euros ($49.7 billion) for its fiscal year ended March 31, 2023, roughly unchanged from a year earlier.
But it issued a pessimistic forecast for the financial year ending in March 2024, indicating that free cash flow would fall to 3.3 billion euros, against 4.8 billion euros the previous year. Free cash flow is a measure of the amount of cash a business has left over after paying operating expenses and other expenses.
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