As the new CEO lays out her objectives to “simplify” the telecoms behemoth, Vodafone, 11,000 jobs will cease to exist over the next three years.
The reductions will impact the company’s global staff by almost a tenth and its UK headquarters as well as other nations.
The financial director at Vodafone, Margherita Della Valle, stated that the company’s “performance has not been good enough.”
Vodafone employs 12,000 people in the UK, who are spread across seven locations, including its Berkshire headquarters.
The company, which employed 104,000 people worldwide last year, has already described plans to eliminate some positions.
The company, which employed 104,000 people worldwide last year, has already described plans to eliminate some positions.
The UK’s largest telecom company has suffered with rising energy costs that are increasing expenditures and hurting its profits.
Additionally, its biggest market, Germany, as well as Italy and Spain, where it has struggled to stay up with competition, have suffered reduced sales.
According to Matt Britzman, an analyst at the financial services company Hargreaves Lansdown, “part of that can be tied to falling customer satisfaction levels in those regions.”
According to the industry watchdog Ofcom, Vodafone’s broadband service in the UK had the second-highest number of complaints of any major operator in the three months leading up to December.
“To consistently deliver, Vodafone must change,” said Ms Della Valle, who was appointed as Vodafone’s new chief in January, and is serving as its interim finance director until a replacement is found.
“My priorities are customers, simplicity and growth. We will simplify our organisation, cutting out complexity to regain our competitiveness.”
It announced the job cuts after reporting a small rise in full year sales to €45.7bn (£39.7bn) and a fall in pre-tax profits.
It also posted a sharp drop in cash flow and forecast earnings would be “broadly flat” for the current financial year.
Vodafone’s former boss Nick Read stepped down in December following concerns over the company’s performance. During his four years in charge the firm’s share price fell sharply.