Telecoms giant Vodafone is planning to make significant job cuts, which will be the largest in five years, in an effort to control costs and improve its performance.
The cuts are expected to be mostly at the company’s London headquarters, according to sources.
The European telecoms sector has been struggling in recent years, with leading companies such as BT and Vodafone in the UK, Telefónica in Spain, and Orange in France, experiencing a decline in value.
These power-intensive and indebted businesses have also been under increased pressure due to rising energy prices and interest rates.
Vodafone, which employs about 104,000 people globally and 9,400 people in the UK, has been facing challenges in simplifying its business, shedding underperforming units, and decentralizing its global operations.
The company’s CEO stepped down at the end of last year and was replaced on an interim basis by the CFO.
In November, Vodafone announced that it would cut €1bn of costs by 2026 due to a decline in profits during the first half of the year.
The company also announced a shake-up of its executive committee, which includes the current CEO of Vodafone Italy, Aldo Bisio, who will expand his remit to include the role of group chief commercial officer.
The company has stated that it will say more about the changes when it announces its third-quarter results on February 1.
