Edited By: Mohammad Haris
Last Updated: January 14, 2023, 10:04 IST
Telecom services major Vodafone is planning to shed “several hundred jobs” and most of them are located at its London headquarters, according to a report by the Financial Times citing two people briefed on the discussions. It added that it is going to be the company’s biggest round of job cuts in five years.
This comes after Vodafone’s November announcement of cost-saving measures worth $1.08 billion by 2026 in the wake of a deteriorating market outlook. European telcos, including Telefonica in Spain and Orange in France, have seen their valuations cut by almost 50 per cent. The businesses have come under intense pressure amid high energy prices and rising interest rates.
Vodafone employs 104,000 people globally. However, it could not be verified how much impact the job cuts will have on India, where the company operates with Idea under the brand name Vi.
Vodafone CEO Nick Read, whose tenure as chief executive saw the company lose more than 40 per cent of its value, stepped down at the end of 2022. Margherita Della Valle, Vodafone’s chief financial officer, has taken over as the interim CEO.
Earlier this week, Vodafone also agreed to sell its business in Hungary to local IT company 4iG and the Hungarian state for $1.82 billion in cash. This deal was first announced in August last year.
“We are reviewing our operating model, focusing on streamlining and simplifying the group. We will say more about the changes when we announce our third-quarter results on February 1,” the company had said in November.
Cab aggregator Ola has also laid off employees from some of its verticals as part of a restructuring exercise. They said the Bengaluru-based company has given the pink slip to around 200 employees from its tech and product teams, and engineering roles have been impacted the most.
E-commerce company Amazon has also started laying off around employees in India as part of its biggest retrenchment exercise across the globe, according to reports. Amazon has sent an email to concerned employees apprising them that they have been laid off.
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