Vodafone’s (VOD.L) new CEO Margherita Della Valle said she would remove 11,000 positions over three years to streamline the telecoms business, which she said “must change” after forecasting a 1.5 billion euro free cash flow decrease this year.
“Our performance has not been good enough,” said Della Valle, appointed permanently last month.
I prioritize customers, simplicity, and growth. So we’ll simplify to regain competitiveness.”
The 100,000-person group’s biggest job losses ever.
Vodafone said it would create 3.3 billion euros of cash this financial year, compared to 4.8 billion euros in the year to end-March, it disclosed on Tuesday, and 3.6 billion euros projected by analysts.
It said Germany, its biggest market, was underperforming, and increased energy costs caused a 1.3% fall in group core earnings to 14.7 billion euros for the year to end-March, missing its guidance.
However, growth in Africa and handset sales lifted revenue by 0.3% to 45.7 billion euros.
According to media reports, Vodafone slashed 1,000 positions in Italy earlier this year and 1,300 in Germany.
Vodafone claimed it could not guarantee a merger with Hutchison’s Three UK. However, the talks were not discussed.
