Vodafone Plans 11,000 Job Cuts Over Three Years as Part of Turnaround Plan
May 16 2023 - 2:59AM
Dow Jones News
By Adria Calatayud
Vodafone Group said Tuesday that it plans to cut 11,000 jobs
over three years as part of Chief Executive Margherita Della
Valle's plan to turn around the group's performance.
The U.K.-based telecommunications group said it will pursue a
Germany turnaround plan, continued pricing action and a strategic
review in Spain, and that it will seek to drive further growth from
its business-focused operations.
"Our performance has not been good enough. To consistently
deliver, Vodafone must change," Ms. Della Valle said.
For the year ended March 31, Vodafone reported a pretax profit
of 12.82 billion euros ($13.94 billion) compared with EUR4.10
billion in fiscal 2022, reflecting a gain on the disposal of
Vantage Towers.
Revenue for the year was up 0.3% at EUR45.71 billion, with
service revenue down 0.6%.
Adjusted earnings before interest, taxes, depreciation and
amortization after leases--a closely watched profitability
metric--was EUR14.665 billion, down 1.3% on year on an organic
basis.
Analysts had expected Vodafone to report adjusted Ebitda after
leases of EUR14.73 billion on revenue of EUR45.515 billion,
according to consensus estimates provided by the company.
For the year ahead, the company said it expects adjusted Ebitda
to be flat at around EUR13.3 billion--a figure that has been
restated to reflect the group's current structure and
foreign-exchange rates--and adjusted free cash flow to be around
EUR3.3 billion.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
May 16, 2023 02:44 ET (06:44 GMT)
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