Vodafone Group has recently announced layoffs. According to reports, the group's new Chief Executive Officer (CEO) Margherita Della Valle has told that 11,000 employees of the company will be laid off. All these employees will be removed in a period of three years.
Margherita Della Valle believes the change is necessary after the telecom company forecasts a 1.5 billion euro drop in free cash flow this year. Della Valle has been appointed permanently in the company only last month.
Della Valle said, “The performance of the company has not been good. My priorities are customers, simplicity and growth. We will simplify our organization by removing complexity to regain our competitiveness."
According to Reuters report, this will be the biggest layoff ever for the company. Presently there are 1 lakh employees in Vodafone. The telecom company said it expects to generate 3.3 billion euros in cash in the current fiscal year, down from 4.8 billion euros in the previous fiscal year that ended at the end of March.
Earlier this year, Vodafone announced the layoff of 1,000 employees in Italy. In Germany too, 1,300 employees can be retrenched. Germany is the biggest market for Vodafone.
A Reuters report claimed that the telecom company's market performance has been weak. The Group's core earnings for the year to the end of March were 14.7 billion euros, a decline of 1.3%.