Why Vodafone Plans To Cut 11,000 Jobs Soon?

Vodafone's new boss Margherita Della Valle said she would cut 11,000 jobs over three years to simplify the telecoms group, which she said "must change", as it forecast little or no growth in earnings for the new financial year, according to a Reuters report.

The job cuts are the biggest in the history of Vodafone, which employs around 100,000 people across Europe and Africa, making it one of Britain's best known corporate brands, stated the Reuters report.

"Our performance has not been good enough," said Della Valle, who was appointed permanently as CEO last month, adding: "My priorities are customers, simplicity and growth".

Vodafone opened 4.5% lower, the biggest faller in the FTSE 100 and dropping to their lowest level since early January, added Reuters report.

"Lacklustre performance has been something markets have come to expect from Vodafone of late, and full-year results didn't buck the trend," said Matt Britzman, equity analyst at Hargreaves Lansdown.

Della Valle said Germany, Vodafone's biggest market, was underperforming, while Spain, which has suffered cut-throat competition in recent years, was under strategic review, Reuters reported.

Underscoring the pressures on the business, Vodafone said it would generate 3.3 billion euros ($3.6 billion) of cash this financial year, down from 4.8 billion euros in the year to end-March 2023. Analysts had expected 3.6 billion euros.