Vodafone Group is preparing a round of job cuts as it seeks to cut costs by €1-billion (R18.3-billion) by 2026, according to a person familiar with the matter.
The cuts have not been finalised but will likely number in the hundreds and also affect offices in London, the person said, asking not to be identified because the discussions are confidential.
“We are reviewing our operating model, focusing on streamlining and simplifying the group,” Vodafone said in an e-mailed statement. “We will say more about the changes when we announce our third quarter results on 1 February.”
The planned job cuts were reported earlier by the Financial Times.
The Newbury, England-based telecommunications group is in the midst of a turbulent few months which has seen its share price sink to its lowest in decades and CEO Nick Read leave last month, as it deals with inflation and fends off activists and strategic investors. Vodafone announced a cost-cutting programme in November.
Shares declined 22% in the last 12 months and underperformed rivals in the ailing European telecoms sector.
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The group announced changes to its executive committee on Thursday, which gave Italy unit CEO Aldo Bisio the additional role of chief commercial officer and will see the head of its Spain unit, Colman Deegan, step down after about two and a half years in the post. Chief financial officer Margherita Della Valle is acting as interim CEO.
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A spokeswoman for the Prospect union, which has members at Vodafone, said it will “ensure that any members impacted by proposed job cuts are treated fairly and consistently”. — Thomas Seal, (c) 2023 Bloomberg LP