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Following a downbeat outlook and plans by new CEO Margherita Della Valle to simplify the telecoms giant, Vodafone (NASDAQ:VOD) dropped 3.4% in premarket trading on Tuesday. The company expects to cut 11,000 jobs over the next three years, which will impact more than a tenth of its workforce.
“Our performance has not been good enough. To consistently deliver, Vodafone must change,” said Della Valle, who was appointed last month. “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.”
Vodafone (VOD) also reported FY results that missed prior guidance, showing a 1.3% drop in earnings to a lower-than-expected Є14.7B. Germany, its biggest market, underperformed significantly due to higher energy costs.
Last month, Vodafone reportedly got offers for its Spanish business that could value the unit at more than $4B.
More about layoffs:
Lucid reportedly plans to lay off nearly 1,300 workers
Accenture to lay off 19,000 people in cost-cutting effort
Amazon cuts 9,000 jobs — and more layoffs could be coming
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