Vodafone Restructuring: Margherita Valle, The CEO to Cut 11,000 Jobs, & Seeks Simpler Organisation
Vodafone, the British mobile phone giant announced on Tuesday that, it is planning to cut approximately 11,000 jobs within the coming three years. Margherita Della Valle, the new chief executive officer of Vodafone said, this is a part of her restructuring plan that would convert the organization into a simple one. She also stated that she seeks an organization that is “simpler”.
At the group, alongside the news of flat annual revenue, the CEO, Della Valle said, ‘Our performance has not been good enough.” Cutting down 11,000 positions from Vodafone would make it a 10 percent cut of jobs from the global workforce. Furthermore, Della Valle added, “To consistently deliver, Vodafone must change.” And also, “We will simplify our organization, cutting out complexity to regain our competitiveness.”
Amid the prevailing skyrocketed labor turnover by various tech giants including Facebook parent Meta, Twitter, and many more, Vodafone’s announcement causes a trembling sensation in the market. The continuous rising of labor turnover and decrease in head counts affects the economy at large by weakening it over time.
The company further announced that “11,000 role reductions planned over three years, with both HQ and local markets simplification”. The organization currently has 300+ million mobile customers only in Africa and Europe. Moreover, the company is set to launch 5G services in the United Kingdom.
Vodafone has also set to expand its business to small businesses and rural communities by expanding its broadband connectivity. Faster 5G connectivity has been recently badly impacted by the ban on Huawei by Britain. Following the announcement, the company’s share dropped by 2.9 percent.