Vodafone Germany has announced a major restructuring plan aimed at saving approximately €400 million over the next two years. This transformation program will involve the loss of around 2,000 jobs as part of a broader effort to streamline operations and reduce costs.
Vodafone Germany Announces 2,000 Job Cuts
According to Reuters, the telecommunications giant stated that the restructuring initiative is a continuation of a cost-cutting strategy announced nearly a year ago, which is expected to lead to a total of 11,000 job cuts worldwide.
The company plans to achieve cost reductions primarily through savings and job relocations, leveraging increased automation to replace manual tasks. Notably, a significant portion of the savings will stem from updating outdated IT structures.
Despite the job losses and cost-cutting measures, Vodafone Germany remains committed to investing in high-growth areas such as cloud services and corporate client business. This strategic focus underscores the company's efforts to adapt to evolving market demands while maintaining competitiveness.
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"Costs should be reduced primarily by dismantling complex structures and modernizing network elements and IT systems. Investments in strong networks, simple products, improved customer accessibility, advertising, and the growth areas of IoT and cloud are being increased," the company's media relations head, Tobias Krzossa said in a statement (translated from German).
(Photo : Ralph Orlowski/Getty Images)
DUESSELDORF, GERMANY - MAY 24: The German headquarters of British mobile telephone giant Vodafone is seen May 24, 2005 in Duesseldorf, Germany. Vodaphone announced a three percent increase in pre-tax profits at today's annual news conference.
Vodafone Germany's Latest Leadership Change
In a leadership change earlier this month, Philippe Rogge was replaced by Ahmed Essam as Executive Chairman Germany and Chief Executive European Markets, reflecting Vodafone's commitment to navigating these changes effectively.
The restructuring plan aligns with Vodafone's broader vision to simplify operations, enhance customer experience, and drive growth in key sectors. The company aims to strengthen its networks, offer simpler products, improve customer accessibility, and capitalize on emerging opportunities in areas like IoT (Internet of Things) and cloud services.
This move underscores Vodafone's determination to remain agile in a rapidly evolving industry landscape while ensuring long-term sustainability and profitability.
The restructuring program is expected to have a financial impact of approximately €400 million over the next two years. Vodafone affirms its commitment to executing these changes responsibly, with a focus on supporting affected employees and reinforcing expertise in growth areas like cloud computing and IoT solutions.
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Dave Calhoun, Boeing's CEO, announced his resignation amid growing concerns about safety mishaps and manufacturing issues.
"Board Chair Larry Kellner informed the board that he does not stand for re-election at the upcoming Annual Shareholder Meeting.
The board has elected Steve Mollenkopf to succeed Kellner as independent board chair. In this role, Mollenkopf will lead the board's process of selecting Boeing's next CEO," Boeing said in an official statement.
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