vodafone layoffs plan to rein in costs
England: A new sun with new layoff news in the market, Vodafone is all set to cut off their headcounts to reduce costs. It is going to be the biggest round of cutoffs in the last 5 years. The telecom conglomerate tries to revive its faltering performance by cutting expenses.
The telecom company Vodafone is ready to say goodbye to hundreds of its employees. 2 people briefed the plan of the telecom company, and most of the state is based in London.
The leading groups of The European telecoms sector have faced bad and low years in the recent past. Because of this many telecom companies like Vodafone and BT in the United Kingdom, and Orange in France, Telefónica in Spain have decreased their prices by half. But power cuts and low energy supplies in Europe have increased business and service provider interest rates and taxes.
Vodafone has more than 104,000 employees globally and basically, around 9,400 people are based in the UK. So the last financial year was quite challenging for this company. Vodafone came under pressure from investors and cut out the lousy-performing units. Chief executive officer Nick Reid suffered a 40% drop in his shares in the FTSE 100 company. Investor Cevian Capital also caused many declines in shares in Spain and Italy, which they blamed on the centralized business model.
The company of Vodafone announced in November that they will reduce expenses by around €1bn of costs by 2026. The company also said that group profits had fallen first half of the year. Germany was the worst area of the performance.
“We are reviewing our operating model, focusing on streamlining and simplifying the group. We will be announcing more about the changes when we announce our third quarter results on 1 February. Will tell.”- Vodafone said in a statement.
But the bitter truth is this telecom company had loved 50% of the prices in the last 5 years so they have no option to reduce costs rather than cut the headcounts in the company’s workforce.
So, Vodafone gave a surprise by announcing a layoff on Thursday! They also announced a reshuffle and reset of its executive committee. Aldo Bisio, the current CEO of Vodafone Italy, also asked to expand the position.