Vodafone, the telecommunications giant, announced a projected decrease in cash generation this fiscal year, expecting around 3.3 billion euros compared to the 4.8 billion euros reported in the previous year ending in March.
The company’s largest market, Germany, underperformed, leading to a 1.3% decline in group core earnings to 14.7 billion euros, missing its own guidance due to increased energy costs.
However, Vodafone achieved a 0.3% rise in revenue to 45.7 billion euros, fueled by growth in Africa and increased handset sales. The newly appointed CEO, Margherita Della Valle, revealed plans to cut 11,000 jobs over three years to simplify the organization and counter the anticipated cash flow decline.
Della Valle emphasized the need for improvement, stating, “Our performance has not been good enough.” Her priorities include focusing on customers, streamlining operations, and fostering growth. The job cuts represent the most considerable reduction in the company’s history, as Vodafone currently employs approximately 100,000 people.
While Vodafone has previously reduced jobs in key markets, such as shedding 1,000 positions in Italy earlier this year, reports suggest it may also cut approximately 1,300 jobs in Germany.
Regarding the potential merger between Vodafone’s British business and Hutchison’s Three UK, the company stated that there is no guarantee that an agreement will be reached, offering no further comments on the matter.
