Vodafone Plans 11,000 Job Cuts Over Three Years as Part of Turnaround Plan

   By Adria Calatayud 
 

Vodafone Group said Tuesday that it plans to cut 11,000 jobs over three years as part of Chief Executive Margherita Della Valle's plan to turn around the group's performance.

The U.K.-based telecommunications group said it will pursue a Germany turnaround plan, continued pricing action and a strategic review in Spain, and that it will seek to drive further growth from its business-focused operations.

"Our performance has not been good enough. To consistently deliver, Vodafone must change," Ms. Della Valle said.

For the year ended March 31, Vodafone reported a pretax profit of 12.82 billion euros ($13.94 billion) compared with EUR4.10 billion in fiscal 2022, reflecting a gain on the disposal of Vantage Towers.

Revenue for the year was up 0.3% at EUR45.71 billion, with service revenue down 0.6%.

Adjusted earnings before interest, taxes, depreciation and amortization after leases--a closely watched profitability metric--was EUR14.665 billion, down 1.3% on year on an organic basis.

Analysts had expected Vodafone to report adjusted Ebitda after leases of EUR14.73 billion on revenue of EUR45.515 billion, according to consensus estimates provided by the company.

For the year ahead, the company said it expects adjusted Ebitda to be flat at around EUR13.3 billion--a figure that has been restated to reflect the group's current structure and foreign-exchange rates--and adjusted free cash flow to be around EUR3.3 billion.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

May 16, 2023 02:44 ET (06:44 GMT)

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