🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Vodafone cuts 1,300 jobs in Germany as cull continues

Published 30/03/2023, 11:45
Vodafone cuts 1,300 jobs in Germany as cull continues
VOD
-

Proactive Investors - Vodafone has added Germany to the list of places where it is cutting jobs, with the mobile phone giant axing 1,300 full-time jobs there.

Administrative and management positions are predominantly affected, regional boss Philippe Rogge said in an interview. with Handelsblatt.

"If we want to finance our ambitions, we have to take this painful step," said Rogge, who took over in the country last July and is also a full Vodafone board member.

Rogge added that making Vodafone Germany leaner will help it compete better with its most important competitor (Deutsche Telekom (ETR:DTEGn)), he said.

Prior to this latest round of job cuts, Vodafone employed around 14,230 staff in the country, which has been a problem area for Vodafone for years with no growth and fierce competition.

Last month, the telecoms group said service revenue in Germany fell 1.1% in its third quarter, a performance interim chief executive Margherita Della Valle described as “simply not good enough.”

Shares in Vodafone are languishing near five-year lows due to a combination of minimal growth, high debts and seemingly no strategy to change the situation.

Nick Read, chief executive, departed last year with finance head Della Valle stepping up until a permanent successor is found.

Earlier this month, Vodafone said it would cut 1,000 jobs in Italy - almost a fifth of its total workforce there, with several hundred UK jobs going at the start of 2023.

In November Vodafone cut its annual profit forecast and announced a £1bn cost-cutting strategy.

Shares in Vodafone were little changed, down 0.3% at 89.5p.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.