Vodafone is taking a tough cost-saving course in Germany and plans to cut around 2,000 jobs over the next two years.
With the move, about which employees were informed this morning, the telco intends to save around €400 million across the next two fiscal years starting on 1 April 2024. Vodafone had only announced in March 2023 that it would be cutting 1,300 jobs. The new reductions will affect around 13% of the current total German workforce of around 15,000 employees.
Vodafone is taking this step in response to the high costs and strong competition faced by the company in Germany. TV customer figure have been declining for years. The pressure on Vodafone in the German cable market will increase further when possibility to include the cable TV subscription in tenants’ ancillary rental costs will cease on 1 July 2024. This is likely to result in further customer losses.
Vodafone Deutschland CEO Philippe Rogge recently announced that he would be leaving the company on 31 March 2024. He will be succeeded Marcel de Groot, currently in charge of the consumer business.