Vodafone Group on Tuesday said it planned to cut 11,000 jobs as it “rebased” its current-year forecasts at a much lower level.
Vodafone said it’s cutting 11,000 roles over three years, at both headquarters in Newbury, England, as well as local markets.
“Our performance has not been good enough. To consistently deliver, Vodafone must change,” said CEO Margherita Della Valle in a statement.
The company reported a 1% decline in earnings before interest, tax, depreciation and amortization after leases to €14.67 billion, with revenue up 0.3% to €45.71 billion, as the company said energy costs and commercial underperformance in its top market of Germany weighed on its bottom line. The expected adjusted EBITDA was €14.73 billion on revenue of €45.52 billion.
It said based on its new structure as well as current exchange rates, it’s expecting an adjusted EBITDA of €13.3 billion and cash flow of €3.3 billion. It said last year’s results on its current structure was €13.3 billion and cash flow of €4.2 billion. The company also has its Spanish business, which had the worst organic sales performance of any division, under strategic review.
“The results and guide for FY24 completes a major reset of expectations as estimates (particularly on FCF) have been trending down,” said Citi analyst Georgios Ierodiaconou, who rates the company at neutral.
Vodafone shares slumped 4% in London and are down 28% over the last 52 weeks.