Vodafone has recently announced plans to make some significant changes under its new CEO, Margherita Della Valle.
With a goal of regaining its competitive edge in the market, TechRadar reports that the company is set to cut 11,000 jobs over the next three years.
This move is expected to help simplify Vodafone's organizational structure.
Which Vodafone Markets are on the Chopping Block?
Della Valle has her sights set on the company's biggest markets, including Germany, which is currently underperforming.
In addition to job cuts, she is also considering a structural change in Spain, such as a full or partial sale.
Vodafone has already started trimming jobs in Italy and Germany and now plans to spread the cuts across its markets in Europe and Africa.
Recent Changes from Vodafone
However, job cuts are not Vodafone's only move to improve its position in the market.
As first reported by the Financial Times, the company is reportedly in talks with CK Hutchinson, the parent company of Three UK, regarding a merger that could make Vodafone the world's largest mobile operator.
This potential merger could give Vodafone the boost it needs to compete with other major players in the industry.
Another major move by Vodafone is its recent decision to switch off its 3G signal this year in parts of the UK, making it the first UK mobile phone network to do so.
This will enable the company to focus on more advanced technologies, such as 5G, which are expected to be the future of mobile communications.
Despite the potential benefits of these changes, Reuters reports that Vodafone's stock prices have already taken a hit. The company's shares fell to their lowest level since early January, reflecting the uncertainty surrounding the company's future.
Prioritizing Simplicity and Growth
The Vodafone CEO has her sights set on prioritizing customers, simplicity, and growth.
She firmly believes that change is necessary for the company to consistently deliver, so she aims to cut out complexity to regain competitiveness.
By maximizing the potential of business customers and focusing on the basics, such as customer service, for consumers, she plans to revamp Vodafone's performance.
According to Della Valle, the European telecoms market has not been yielding a good return on the capital invested in networks.
Furthermore, Vodafone's relative performance has worsened, with activist investors and rivals criticizing the company for being unwieldy and slow to respond to market changes.
More from Vodafone
Interestingly, Reuters reports that Etisalat, a telecoms firm based in the United Arab Emirates, has acquired a 14.6% stake in Vodafone.
In addition, French telecoms billionaire Xavier Niel, who competes with Vodafone in Italy, and Liberty Global, Vodafone's partner in the Netherlands, have also invested. Analysts speculate that all three are positioning themselves for any potential sale of Vodafone's operations.
Despite this, Della Valle has confirmed that Vodafone will maintain its dividend.
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