Vodafone to cut 11,000 jobs as cash flow dries up
STORY: Vodafone is to cut 11,000 jobs over three years.
That’s more than 10% of its workforce, and the biggest cutback in the firm’s history.
The move comes after the UK mobile phone giant missed forecasts for the year.
Core earnings slid 1.3% to about $16 billion, with Vodafone blaming factors including higher energy costs.
The company said it would also generate much less cash flow than expected.
On Tuesday (May 16) new boss Margherita Della Valle said the performance was “not good enough”.
She said Germany, Vodafone’s biggest market, was underperforming, and said its operations in Spain were under review.
The news sent shares in the firm down 4% in early trade.
But it didn’t surprise investors, who have long criticised Vodafone for being slow to change.
Della Valle says she will focus on maximising the potential of business customers, and try to improve service in the consumer market.
Vodafone had already started cutting jobs in some countries, with 1,000 posts going in Italy earlier this year.