In a bid to restructure its operations and bolster financial resilience, Vodafone Germany has revealed plans to trim approximately €400 million ($434.48 million) over the next two years. The company’s announcement on Tuesday outlined a strategy that will impact around 2,000 jobs as part of a broader cost-cutting initiative.
Vodafone Germany has reported revenue of €3.34 billion during the December quarter of fiscal 2023-24. Vodafone Germany has generated mobile service revenue of €1,272 million and fixed service revenue of €1,620 million. Vodafone Germany does not reveal its profit.
Vodafone’s annual report indicates that Germany is the largest telecom market in terms of revenue for the UK-based Vodafone Group.
The decision to cut number of jobs in Germany aligns with a previously disclosed effort initiated nearly a year ago, which is expected to culminate in the loss of approximately 11,000 positions globally. Vodafone Germany indicated that these cost-saving measures will primarily target personnel expenses, with a significant portion of the job reductions stemming from increased automation to streamline manual tasks, Reuters news report said.
Key elements of the restructuring plan include the optimization of outdated IT infrastructure, which is anticipated to yield substantial savings. Despite these cost reductions, the company emphasized its commitment to investing in high-growth sectors such as cloud services and corporate clientele, signaling a strategic shift towards areas with greater potential for expansion.
Vodafone Germany, a subsidiary of the British telecommunications behemoth Vodafone, has faced challenges in certain European markets, notably in Spain and Italy. Earlier this month, the company announced the sale of its Italian operations to Swisscom as part of ongoing efforts to realign its business portfolio.
Moreover, in a leadership shuffle reflective of these changes, Vodafone Germany disclosed the appointment of Ahmed Essam, currently serving in Vodafone UK, to replace Philippe Rogge as Executive Chairman for Germany and Chief Executive for European Markets, underscoring a renewed focus on driving growth and efficiency in its largest market.
The restructuring initiative underscores Vodafone’s proactive approach to adapt to evolving market dynamics while maintaining a strategic vision for sustainable growth amidst challenging economic conditions.
Baburajan Kizhakedath
