Vodafone, the prominent British mobile phone company, has announced its intention to eliminate 11,000 positions within the next three years, following the appointment of new CEO Margherita Della Valle, who aims to streamline the organization. Della Valle emphasized the need for a more straightforward structure while acknowledging the group’s stagnant annual revenue. This move comes as the company aims to streamline its operations and simplify its organization. Last year, Vodafone’s workforce totaled 104,000 employees worldwide.

Vodafone Layoff Plans

Vodafone’s decision to reduce its workforce comes amidst a larger trend of job cuts in the global tech sector, including major companies like Meta (formerly Facebook). The weakening economy due to soaring inflation has prompted organizations to restructure and downsize.

The announcement of job cuts follows the departure of former CEO Nick Read, who stepped down in early December. During his four-year tenure, Vodafone experienced a significant decline in its share price. As part of ongoing discussions, Vodafone was exploring the possibility of merging its UK operations with CK Hutchison-owned Three UK, a rival telecom company based in Hong Kong.

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Vodafone announced today that it is on the verge of finalizing a deal valued at EUR 15 billion, which translates to approximately Rs. 1,53,774 crore. The telecommunications company also revealed its financial results for the fiscal year ending in March, stating that its group revenue remained nearly unchanged at EUR 45.7 billion (roughly Rs. 4,09,430 crore) compared to the previous year.

Vodafone further disclosed a significant increase in net profit, rising from EUR 2.2 billion (roughly Rs. 19,709 crore) to EUR 11.8 billion (roughly Rs. 1,05,717 crore). This substantial surge in net profit is attributed to the partial sale of its European mast division, Vantage Towers.