Vodafone shares fall 4% after cutting a record 11,000 jobs

- Vodafone shares fell as much as 4% on Tuesday, after the British telecoms company announced plans to cut a record number of jobs and forecast flat profit growth.
- “Our performance has not been good enough. To deliver consistently, Vodafone needs to change,” recently appointed chief executive Margherita Della Valle said in a candid statement on Tuesday.
- Vodafone said it would cut 11,000 jobs over three years, out of a total workforce of just over 1[ads1]00,000. It is the largest round of reductions made in the company’s history, Reuters reported.
Vodafone announced plans to cut 11,000 jobs as part of a turnaround plan by the company’s newly appointed chief executive Margherita Della Valle.
Paul Hanna | Bloomberg | Getty Images
Vodafone shares fell as much as 4% on Tuesday, after the British telecoms company announced plans to cut a record number of jobs and forecast flat profit growth.
“Our performance has not been good enough. To deliver consistently, Vodafone needs to change,” recently appointed chief executive Margherita Della Valle said in a candid statement on Tuesday.
Vodafone said it would cut 11,000 jobs over three years, out of a total workforce of just over 100,000. It is the largest round of reductions made in the company’s history, Reuters reported.
“My priorities are customers, simplicity and growth. We will simplify our organization, cut out complexity to regain our competitiveness. We will reallocate resources to deliver the quality service our customers expect and drive further growth from the unique position of Vodafone Business,” Della Valle said.
Vodafone reported 45.7 billion euros ($49.7 billion) in revenue for the fiscal year ending March 31, 2023, roughly unchanged from the previous year.
But it gave pessimistic guidance for the financial year ending in March 2024, saying free cash flow would fall to 3.3 billion euros, down from 4.8 billion euros the previous year. Free cash flow is a measure of how much cash a company has left after paying operating expenses and other expenses.
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