The Financial Times is reporting that Vodafone is planning several hundred layoffs in the U.K. The company said in a statement provided to FT that it is reviewing its operating model with a focus on streamlining and simplifying. The company will provide more details in its fiscal Q3 2023 earnings on February 1.
Vodafone Group has telecommunications networks in Europe, Asia and Africa. But the new layoffs are focused on the U.K.
According to Vodafone’s 2022 annual report, it employed about 104,000 people on average, globally, at the end of 2022. This compared to 105,000 in 2021.
Perhaps news of layoffs is not that surprising. During its fiscal Q2 earnings call, Vodafone Group seemed to be on the defensive. At that time, then Vodafone Group CEO Nicholas Read said the company had experienced a slowdown in Europe. And he said it was taking actions such as changing its pricing plans to reflect inflation and planning to reduce its costs by €1 billion over the next 3.5 years.
In the intervening time since the company’s Q2 earnings report, Nick Read has left the company, and its CFO Margherita Della Valle has been appointed interim Group chief executive, handling both roles until a new CEO is found.
It’s unclear why Vodafone Group is first targeting layoffs in the U.K. According to its annual report, the U.K. group looks to have been holding its own.
Executive shuffles
When Read announced he was leaving the company, Vodafone’s statement again mentioned “operational value,” saying that Della Valle would be focused on that as well as delivering shareholder value.
Earlier this week, the company announced some changes to its executive committee.
Vodafone Spain will join the Europe Cluster and report to Europe Cluster CEO Serpil Timuray.
Colman Deegan, CEO of Vodafone Spain, will step down on March 31 and will support Della Valle on an interim basis until July, 31. His successor will be appointed in due course.
Aldo Bisio, CEO of Vodafone Italy, will take on the role of Group Chief Commercial Officer in addition to his current role. Bisio has been CEO of Vodafone Italy since January 2014 and is already a member of the executive committee.