New Vodafone boss Margherita della Valle said it would cut 11,000 jobs over Three years help Telecommunications group regain its competitiveness edge After being warned that the poor performance in Larger marketGermany, will hit cash flow.
Involved in Vodafone, which underperformed competitors in a lot of Its main European markets fell to their lowest level since early January and have been trading down 4% by mid-morning.
Job cuts are the biggest in the history of Vodafone, which employs 90,000 people directly across Europe and Africa.
Della Valle has been tasked with transforming Vodafone when it is permanently closed took on top job of role of Chief Financial Officer last Month. It has three main investors on Register its shareholders who Everyone can benefit from a breakup of the group.
“In order to deliver consistently, Vodafone has to change,” she said. “My priorities are customers, simplicity and growth. “
Della Valle started cutting Jobs when she said took on head start of the yeartargeting Vodafone’s core operations in London. She told reporters that new Discounts will spread across their markets and more cutbacks in Center.
Germany, Vodafone’s largest marketHer performance was poor added on Tue, while “structural change” means a full or partial sale option in Spain.
Tuesday share price The fall was most likely down to her expectations of 3.3 billion euros ($3.6 billion) of cash flows this financial yearand down from 4.8 billion euros in the year to the end of She said in March 2023. Analysts had expected 3.6 billion euros.
The CEO set the lowest expectations down for timing of payments for cable TV in Germany due to change in the law.
Della Valle said Vodafone’s earnings were an important issue for the board But he noted a “significant” cut. in debt Al said group It was convenient with its influence.
“the new The CEO decided to keep his profits (missed opportunity in our view And the company’s concern remains “Unwilling to take the bolder action necessary,” said analysts at JPMorgan Cazeneuve.
lagging competitors
Vodafone reported 1.3% decline in group essence earnings to 14.7 billion euros for the yearit misses its routing.
Della Valle said European contacts market It has long been yielding poor returns on invested capital in Networks, but nearby Vodafone performance worsened over time.
Active investors and their competitors also Description of the British group Unwieldy and slow to respond market changes.
The Emirates Telecom Company has Etisalat built up Vodafone’s share is 14.6%, and French billionaire Xavier Neil is competing with He. She in Italy. Liberty Global, its partner in Holland also Investor.
Analysts said all three are in place for no sale of Vodafone operations.
session out Della Valle said in its roadmap that it will maximize the potential of business Customers, Vodafone’s long-term strength, with focus on basics, such as customer service, for consumers.
Vodafone has it already I started cutting jobs in big Markets, disposal of 1000 in Italy this yearwhile a media The report said it was looking to cut about 1,300 in Germany.
Nick Reid, predecessor of Della Valle, who Has stepped up down in And in December, amid investor frustration, he said a merger was needed in main markets like Britain, where Vodafone was in talks with Hutchison’s Three UK competitor for At least nine months.
Vodafone said on Tuesday, there can be no certainty that any deal will eventually be agreed.
It will take a long time to get a file good Della Valle told reporters.
