London (EFE).- The CEO of the telecommunications company Vodafone, Margherita Della Valle, announced on Tuesday an “action plan” to improve the performance of the group, focused on simplicity and reliability, and which dismissal of 11,000 workers in the next three years.
The company, with a workforce of 90,000 people worldwide, aims to shed just over 12 percent of its workers, after envisioning a 1.5 billion-euro drop in cash flow this year.
Vodafone expects to generate 3.3 billion euros in cash in the current fiscal year, which began on April 1, a drop from 4.8 billion in the previous year.
The plan, on which they have been working for five months, has been launched after Della Valle took over the reins of the group last January.
Objective: Customer needs
The goal of the “action plan” is to focus on customer needs, business simplification, and growth.
To carry out the plan, Vodafone has ordered the reduction of jobs, both at its headquarters and in local markets, a restructuring plan in Germany and a strategic review in Spain.
Della Valle mentioned Germany, where performance is low, partly due to rising inflation and high energy costs.
“You have to go back to basics,” said the board of directors in a teleconference, and stressed that what customers ask for the most is “simplicity and reliability” of the service, so Vodafone will be a simpler company, although they acknowledged that it will not be ” a quick fix.”
The group’s revenues were increased by the growth in the African market and an increase in equipment sales, which made it possible to offset the lower revenue recorded for services in Europe, especially in Germany, and an adverse exchange rate.