Vodafone’s new CEO Margherita Della Valle has announced 11,000 job cuts. The employees will be removed over a period of three years. She believes that it is a “must change” after the telecom forecasts a 1.5 billion euro decline in free cash flow this year.
"Our performance has not been good enough," said Della Valle, who was appointed permanently last month.
"My priorities are customers, simplicity and growth. We will simplify our organisation, cutting out complexity to regain our competitiveness."
As per a report by Reuters, this will be the biggest layoff for the company ever. It currently has 1,00,000 employees.
The telecom company reported that it will generate 3.3 billion euros of cash in the ongoing financial year, down from 4.8 billion euros in the year to end-March.
Prior to this, Vodafone had announced 1,000 job cuts in Italy earlier this year. It is also expected to layoff 1,300 employees in Germany.
Germany is the biggest market for Vodafone. A Reuters report claims that the market is underperforming for the telecom company. It witnessed a decline of 1.3 per cent in group core earnings amounting to 14.7 billion euros for the year to end-March.
Prior to this, Vodafone had announced 1,000 job cuts in Italy earlier this year.
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