Vodafone (VOD.UK) shares are down more than 3.5% in today's session, slipping to levels not seen since the start of the year following the announcement of a plan to lay off 11,000 staff and slow revenue momentum this year. The proposed mass redundancy program will be the largest in the company's history and is expected to be spread over the next three years. The company's new CEO, Ms Margherita Della Valle, said that the company's performance is not good enough and the company needs to change.
The company's CEO gives some hints in the area of planned changes. First and foremost, the company is to simplify the operations of the organization, which is expected to have a positive impact on the competitive position in the telecom industry. The company also intends to reallocate its resources and specifically support the Vodafone Business sector.
It is also worth remembering that the merger process with Vodafone's biggest competitor, Three UK, is progressing in the background. According to media reports, talks on this matter are already in the final straight. The merger is expected to be worth close to $19 billion.
The company today published its results for the 2023 fiscal year, with revenues of EUR 45.7 billion, roughly the same as last year. Source: Vodafone
The company's forecasts for the next fiscal year are expected to come under pressure. Source: Vodafone
Vodafone (VOD.UK) share price chart, D1 interval. Source: xStation5
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