British telecom giant Vodafone today said it will cut 11,000 jobs over the next three years as new chief executive Margherita Della Valle seeks a "simpler" organisation as it forecasts little or no growth in earnings for the new financial year. The new CEO said Vodafone will be a leaner and simpler organisation, "to increase our commercial agility and free up resources".
"Our performance has not been good enough. To consistently deliver, Vodafone must change," Ms Della Valle, appointed CEO on a permanent basis at the start of May after five months as interim boss, said in a statement.
11,000 lay-offs will amount to more than 10 per cent of Vodafone's global workforce, which stood at 104,000 staff last year.
"My priorities are customers, simplicity and growth. We will simplify our organisation, cutting out complexity to regain our competitiveness. We will reallocate resources to deliver the quality service our customers expect, and drive further growth from the unique position of Vodafone Business," Margherita Della Valle added.
The company said that in order to win its consumer markets, it will refocus on the basics and deliver "the simple and predictable experience" its customers expect.
Vodafone said the action plan is focussed around three priorities -- significant investment reallocated in the coming fiscal towards customer experience and brand, 11,000 role reductions planned over three years, with both HQ and local markets simplification, and a Germany turnaround plan, continued pricing action and strategic review in Spain.
Margherita Della Valle's predecessor Nick Read stepped down in December last year after a four-year tenure marked by a steep fall in the company's share price.
