Global telecom carrier Vodafone on Tuesday said it plans to reduce 11,000 jobs over the next three years, with an aim to "simplify" both headquarters and local markets.
Margherita Della Valle, Group Chief Executive, said their performance has not been good enough.
"To consistently deliver, Vodafone must change. My priorities are customers, simplicity and growth. We will simplify our organisation, cutting out complexity to regain our competitiveness," she said in a statement as the company posted its FY23 results.
"We will reallocate resources to deliver the quality service our customers expect and drive further growth from the unique position of Vodafone Business," said Valle who was appointed CEO permanently earlier this month after five months as Nick Read stepped down as CEO in early December.
Vodafone said it has an action plan already underway, focused around three priorities -- significant investment reallocated in FY24 towards customer experience and brand, 11,000 role reductions planned over three years and Germany turnaround plan, continued pricing action and strategic review in Spain.
"We will change the level of ambition, speed and decisiveness of execution. We will have empowered markets focused on customers, scale up Vodafone Business and take out complexity to simplify how we operate," said the company.
The group revenue increased by 0.3 per cent to 45.7 billion euros in FY23 driven by growth in Africa and higher equipment sales, offset by lower European service revenue and adverse exchange rate movements. There was a significant reduction in net debt to 33.4 billion euros.
"We will be a leaner and simpler organisation, to increase our commercial agility and free up resources. We will focus our resources on a portfolio of products and geographies that is right-sized for growth and returns over time," said the company.
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