Vodafone's Europe Chief Executive Departs -- Update

(Rewrites, adds detail.)

By Simon Zekaria and Tapan Panchal

LONDON--Vodafone Group PLC (VOD.LN) Tuesday announced changes to the management structure of its European operations, including the departure of the regional chief executive, as the mobile telecommunications company moves to boost decision-making in the area, which has suffered sluggish sales in recent years.

Vodafone, which generates the lion's share of its sales in Europe, said its regional chief executive for Europe, Philipp Humm, will leave this year. It also said the heads of its four largest European markets--Germany, Italy, the U.K. and Spain--will become members of the group executive committee and report directly to Chief Executive Vittorio Colao.

The chief executive of Vodafone in the Netherlands will join the executive committee and assume additional leadership responsibilities for smaller European markets, Vodafone said.

The changes are effective from October.

The world's second-largest mobile operator by number of subscribers after China Mobile said the changes will simplify processes, enhance efficiency and accelerate decision-making.

Vodafone is spending billions of dollars on its global network, both wireless and fixed, including sums earmarked for Europe as it bids to revitalize its fortunes in the region, which has posted weak revenue amid consumer spending pressures and high competition among telecom operators.

Operators in Europe are converging to provide bundled offers of telephony and media services to boost subscriber loyalty and revenue. Vodafone has spent $20 billion on acquisitions in Germany and Spain.

At 1115 GMT, Vodafone shares had fallen 0.3% to 238 pence, valuing the company at 63.4 billion pounds ($98.5 billion).

Write to Simon Zekaria at [e-mail] and Tapan Panchal at [e-mail]

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