Vodafone Group Plc announced plans to axe 11,000 jobs over the next three years due to lackluster performance. The cuts will affect its Berkshire headquarters and other countries, with shares dropping by 4% following the announcement. Out of a total headcount of just over 100,000 employees, this decision signifies a major restructuring for the telecommunications giant.
Newly appointed CEO Margherita Della Valle stated that the company's performance has not been satisfactory in recent times. Full-year sales have only seen marginal growth while pre-tax profits dipped. "The company's priorities are customers, simplicity and growth," said Della Valle during an address outlining her vision for Vodafone's future.
To achieve these goals and improve overall financial health, Vodafone will simplify its corporate structure and reallocate resources towards delivering quality service. This move is expected to help streamline operations while maintaining focus on customer satisfaction.
Della Valle also mentioned that earnings for this year would be largely flat as job cuts take place alongside structural changes within the organization. However, she expressed optimism about Vodafone's ability to return to double-digit revenue growth in the medium term once initial challenges are overcome.
In related news from other UK-based companies: Boohoho reported supply chain deflation but anticipates returning to double-digit revenue growth; Imperial Brands Plc forecasts accelerated second-half earnings aided by price increases; British energy regulator Ofgem warns that around 2.5 million more people could end up paying rates of 40% or more if income tax thresholds remain frozen.
Bank of England Governor Andrew Bailey prepares his address at the annual conference of the British Chamber of Commerce; Prime Minister Tony Blair marks his first visit back into office amidst these significant developments within various sectors across Britain.
As new leadership takes charge at Vodafone under CEO Margherita Della Valle and Finance Director Margherita Della Valle, the company looks to make crucial changes in its operations. With the hope of improving financial performance and regaining customer trust, Vodafone embarks on a challenging journey over the next three years as it navigates through significant job cuts and structural reorganization.