Vodafone will lay off 11,000 workers

Chief executive officer of the company Telecommunications company VodafoneMargherita Della Valle, presented an “action plan” to improve the group’s performance, focused on simplicity and reliability, which will include the dismissal of 11,000 workers over the next three years.

The company, with workforce of 90,000 people worldwideintends to get rid of just over 12% of its workforce, after predicting a drop in cash flow of 1.5 billion euros this year.

Vodafone expects to generate 3.3 billion euros in cash in the current fiscal year, which began on April 1, a decline compared to 4,800 million in the previous year.

A plan that was worked on for five monthsit was launched after Della Valle took over the leadership of the group last January.

The goal of the “action plan” is to focus on the client’s needssimplification and growth of business.

To implement the plan, Vodafone ordered a reduction in the number of jobsboth at headquarters and in local markets, a restructuring plan in Germany and a strategic review in Spain.

Della Valle mentioned Germanywhere performance is low, partly due to rising inflation and high energy costs.

“You have to go back to the basics,” the board of directors said at the teleconference and pointed out that what users are looking for most is “simplicity and reliability” of the service, so Vodafone will be a simpler companyalthough he admitted it would not be a “quick fix”.

The The group’s revenues were boosted by growth in the African market and the increase in sales of equipment, which makes it possible to compensate for the lower income generated from services in Europe, especially in Germany, and the unfavorable exchange rate.

In Latin America, the company operates in Chile and Brazil.