In an effort to control costs and boost its faltering performance, Vodafone plans to cut hundreds of jobs over the next five years. The majority of the positions, which will number in the hundreds, will be located in Vodafone’s London headquarters.
Vodafone plans to cut hundreds of jobs in five years
The company announced in November that it would cut its expenses by more than $1 billion by 2026 after announcing that the group’s profitability had decreased in the first half of the year. Vodafone employs about 104,000 people worldwide, including 9,400 in the UK. Over the past few challenging years, the valuations of several of the largest telecom companies have declined considerably.
In the UK, this includes Vodafone and British Telecom, while in Spain and France, it includes Telefónica.
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Vodafone business in India under pressure
Despite facing an uncertain future and the government converting a large chunk of the company’s debt into equity, Vodafone’s operations in India has also been under pressure recently. It was reported earlier this month that local banks had been asked for at least $846 million in urgent liquidity by Vodafone Idea, the company’s Indian division. Local banks, meanwhile, were hesitant to provide new loans.
The company needs money to stay in business. According to sources who , the lenders will hold off on lending the troubled operator further money until either a capital increase by its key shareholders, the UK-based Vodafone Group and the local investor Aditya Birla Group, or a debt-to-equity conversion by the government.
A top official from State owned bank stated “Without that (capital injection), it looks difficult for the company to…survive,”
Also Read: Vodafone Idea gets board of directors’ nod to raise Rs 1,600 cr from ATC
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