The new chief executive of Vodafone has said the mobile to TV group’s performance “has not been good enough”.
Announcing plans to cut 11,000 jobs worldwide over the next three years, Margherita Della Valle said the firm “must change” by simplifying the organisation.
“To consistently deliver, Vodafone must change…we will simplify our organisation, cutting out complexity to regain our competitiveness.”
In addition to its mobile phone business, Vodafone is a sizeable player in cable TV, running the former Kabel Deutschland network in Germany and the VodafoneZiggo JV with Liberty Global.
Germany, one of Vodafone’s biggest markets, was singled out for “commercial underperformance”. There will also be a strategic review in Spain.
Vodafone acknowledged the company’s “performance slowdown” and singled out “commercial underperformance” in Germany, one of its biggest markets.
The company’s German TV based declined by 412,000; ahead of changes to German TV laws, which take effect from July 2024 and end the practise of bulk TV contracting in Multi Dwelling Units (MDUs), Vodafone is working with its Housing Association partners to manage the transition, and sign customers up to individual contracts. In total, it holds 8.5 million MDU TV customers, that between them generate around €800 million in basic-TV revenue.
Della Valle was appointed in January following the departure of CEO Nick Read at the end of 2022.
The company is forecasting little or no growth for the new fiscal year.
