Vodafone Stocks fell as much as 4% on Tuesday after the British telecom company announced record job cuts and projected flat earnings growth.
In a candid statement on Tuesday, recently appointed CEO Margherita della Valle said: “Our performance is not good enough. Vodafone must change in order to continue to deliver results. ” he said in a candid statement.
Vodafone has announced that it will cut 11,000 of its 100,000-strong workforce over three years. According to Reuters, this would be the biggest cut in the company’s history.
“My priorities are customers, simplicity and growth. We will simplify our organization and eliminate complexity to regain our competitive edge. We will reallocate resources to deliver the quality service our customers expect. , will drive further growth from a unique position in the Vodafone business,” said Della. Mr Valle said.
Vodafone reported revenue of €45.7 billion ($49.7 billion) for the fiscal year ended March 31, 2023, largely unchanged from the previous year.
However, the company has issued pessimistic guidance that free cash flow for the fiscal year ending March 2024 will fall to €3.3 billion, down from €4.8 billion a year earlier. Free cash flow is a measure of how much cash a company has left after paying operating expenses and other expenses.
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