Telecommunication market is witnessing cutthroat competition between service providers companies across the world. Risk of recession is hovering over as super power US is facing financial problems. Meanwhile, telecom giant Vodafone has announced to slash 11,000 jobs over the next 3 years. This will be one of the biggest layoffs in the Telecom industry.
Vodafone’s new CEO Margherita Della Valle has announced 11,000 job cuts. She believes that it is a “must change” after the telecom forecasts a 1.5 billion euro decline in free cash flow this year. Della Valle, who was appointed permanently last month said, “Our performance has not been good enough.” She asserted that the decision to cut jobs has been taken as the company seeks a “simpler” organization as it forecasts little or no growth in earnings for the new financial year. Earlier Telecom equipment maker Ericsson had laid off 8,500 employees globally as part of its plan to cut costs.
Della Valle said in a statement, ” To consistently deliver, Vodafone must change. My priorities are customers, simplicity and growth. We will simplify our organization, cutting out complexity to regain our competitiveness. We will reallocate resources to deliver the quality service our customers expect, and drive further growth from the unique position of Vodafone Business.”
Recently Vodafone has cut jobs in several of its big markets, shedding 1,000 in Italy earlier this year and a media report said it was looking to cut around 1,300 in Germany. On the proposed tie-up of its British business with Hutchison’s Three UK, Vodafone said there could be no certainty that any transaction would ultimately be agreed.