Vodafone Group, the world’s second-largest mobile phone company, announced on Tuesday that it would lay off 11,000 employees over the next three years. The layoffs, which represent about 10% of Vodafone’s global workforce, are part of a broader restructuring effort aimed at improving the company’s performance.
In a statement, Vodafone CEO Margherita Della Valle said that the company’s performance “has not been good enough” and that it needs to “change” in order to “consistently deliver.” She added that the layoffs would help Vodafone to “simplify our organization, cutting out complexity to regain our competitiveness.”
The layoffs come at a time when Vodafone is facing a number of challenges, including rising competition from rivals such as Deutsche Telekom and Telefónica, as well as the need to invest in new technologies such as 5G. The company has also been struggling to grow its business in its biggest market, Germany.
In addition to the layoffs, Vodafone is also planning to reduce its costs by €1.5 billion per year. The company said that it would achieve this by streamlining its operations, reducing its headcount, and cutting back on non-essential spending.
The restructuring plan is expected to have a significant impact on Vodafone’s employees. The company said that it would offer severance packages to all affected employees and that it would work to help them find new jobs.
The layoffs at Vodafone are the latest sign of the challenges facing the global telecommunications industry. In recent years, the industry has been hit by a number of factors, including the rise of new technologies, the decline of traditional voice services, and the increasing competition from rivals. As a result, many telecommunications companies have been forced to cut costs and lay off employees in order to remain competitive.
The layoffs at Vodafone are likely to have a negative impact on the company’s morale and productivity. However, the company is hoping that the restructuring plan will help it to improve its performance and become more competitive in the long run.