Margherita Della Valle is the new boss of Vodafone, and reportedly, she is planning to cut 11000 jobs. The proposed plan for jobs cut will be completed over a span of 3 years.
It appears that the reason behind introducing job cuts is to help Vodafone regain its edge in the market. In addition, it will also help the company to improve its cash flow and thus deliver better performance.
For now, the shares of Vodafone are trading at one of their lowest levels in the last 21 years. In fact, the Vodafone shares lost an additional 9% by the end of mid-afternoon.
One of The Biggest Job Cuts In Vodafone History
If we look back, it appears that the recent job cuts introduced by Vodafone are one of the biggest in the company's history. For now, around 90,000 people work at Vodafone across Africa and Europe.
Just last month, the new CEO took the position and is now planning to turn around the Vodafone company. She made it clear that Vodafone as a company must change for consistent delivery. She also added that her priorities are growth, customers, & simplicity.
As soon as the new CEO took charge, the immediate target was the central operations of Vodafone. From there, around 500 job cuts were announced.
If we look around, around 1300 jobs will be lost in Germany and around 1000 in Italy. Overall, the impact of job cuts will be seen across the African & European regions.
One of the biggest markets for Vodafone is Germany & there are reports that the company is underperforming there. That's why the new CEO is planing a structural change to solve the issue. As for the operations in Spain, the company is thinking about sale (full or partial) to solve the issue.
According to experts, the recent decline in Vodafone's shares was due to the $3.6 billion cash flow forecast. Earlier, the company's cash flow was $4.8 billion which reveals that things are not looking good!