As the corporation cuts expenditures and prioritises expansion, the number of UK jobs affected is unknown.
Vodafone has unveiled a huge UK workforce cut programme to improve its financial performance.
The new CEO said the telecommunications company was uncompetitive and would cut 11,000 jobs over three years.
The group employs just over 100,000 people worldwide, including just over 9,000 in the United Kingdom.
Vodafone had not yet responded to requests for information regarding the number of affected roles in the United Kingdom. But it was verified that its Berkshire headquarters would be affected.
Margherita Della Valle, who was appointed CEO permanently last month after her predecessor Nick Read was fired late last year, stated, “Our performance has not been satisfactory.”
“My top three priorities are consumers, simplicity, and expansion. We will reduce the complexity of our organization to regain our competitiveness.”
She spoke as Vodafone reported a 1.3% decline in annual revenue to £12.8 billion.
This number disregarded its guidance.
The company anticipates little or no growth in the same metric for the current fiscal year, with Germany, its largest market, acting as the primary burden and Spain also experiencing difficulty.
However, growth in Africa and increased handset sales allowed it to achieve a 0.3% increase in annual revenue.
There was no new information regarding the proposed merger of its UK business with Hutchison’s Three UK, and discussions continue.
At the opening bell, shares fell by 4%.
Matt Britzman, the equity analyst at Hargreaves Lansdown, commented on the company’s update, “Markets have come to expect lackluster performance from Vodafone in recent years, and full-year results did not defy the trend.
“As a result of higher energy costs and continued weakness in Germany, underlying cash profit came in below the company’s recently lowered guidance.”
Margherita Della Valle, the new CEO, has been forthright about her many obstacles. While refreshing, the candour is not enough to prevent the stock price from plummeting in response to the news.”
