Vodafone set to axe 11,000 jobs, including from its Newbury headquarters, as it reports drop in earnings
Vodafone is set to cut 11,000 jobs over the next three years, the new CEO has revealed.
Margherita Della Valle, who recently became Vodafone’s group chief executive, said it was part of a plan to “simplify our organisation”.
It is thought that some of the job cuts will come from the Newbury headquarters and internationally.
Ms Della Valle said: “Our performance has not been good enough.
“To consistently deliver, Vodafone must change.
“We will simplify our organisation, cutting out complexity to regain our competitiveness.”
Vodafone recently reported a 1.3 per cent drop in full-year earnings to £12.8bn, lower than expected. It forecasts little or no growth over this financial year.
A Vodafone spokesperson said: “The job cuts will be split between Group and Europe and focused on simplifying the business and empowering the markets to serve customers.
“We will aim to make these changes over a three year period.
“Savings from those role reductions will be reinvested into front line improved customer service.
“The vast majority of roles impacted are Group roles and further afield."
Newbury MP Laura Farris added: “Today’s announcement of potential job losses at Vodafone is of course concerning, particularly as its UK operation is headquartered in Newbury.
“However it should be noted that the company employs close to 100,000 people globally and no decisions have yet been taken as to how this will affect jobs in the UK, with current proposals relating to Italy and Germany.
“I remain in very close contact with Vodafone’s senior management on behalf of my constituents who may be affected.”
In January it announced that it had sold its Newbury headquarters campus.
The telecoms giant confirmed the completion of the sale of The Connection, which was built in 2002, to Oval Real Estate and IQON.
The company also agreed long-term leases on four of the seven buildings at the campus, as part of the sale-leaseback transaction, which it said at the time demonstrated “its ongoing commitment to the town”.
