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New Vodafone boss takes aim at costs with 11,000 global job cuts

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Tuesday, 16 May, 2023, 20:18
New Vodafone boss takes aim at costs with 11,000 global job cuts

New Vodafone (VOD.L) boss Margherita Della Valle said she would cut 11,000 jobs globally over three years to help the telecoms group regain its competitive edge after it warned that a poor performance in its biggest market Germany would hit cash flow.

Shares in Vodafone, which has underperformed rivals in its major European markets, fell to their lowest level since 2002, and were trading down 9% by mid-afternoon.

The job cuts are the biggest in the history of Vodafone, which employs 90,000 people directly across Europe and Africa.

Della Valle was tasked with turning Vodafone around when she permanently took on the top job from the role of CFO last month. Three major shareholders could all benefit from a break up of the group.

"To consistently deliver, Vodafone must change," she said. "My priorities are customers, simplicity and growth."