In Short:
Vodafone Germany plans to save 400 million euros by cutting 2,000 jobs over the next two years. The restructuring aims to reduce personnel costs through automation and streamlining outdated IT systems. Despite job cuts, the company will invest in high-growth areas like cloud services. Vodafone has faced challenges in Spain and Italy, leading to the sale of its Italian operation. Philippe Rogge will be replaced by Ahmed Essam as the new Executive Chairman and CEO.
Vodafone Germany to Save 400 Million Euros by Cutting 2,000 Jobs
Vodafone Germany has announced its plan to save around 400 million euros ($434.48 million) over the next two years through a restructuring process that will impact approximately 2,000 jobs. This initiative is part of a cost-cutting strategy that was introduced nearly a year ago, leading to a total of 11,000 job cuts globally.
Cost Reduction and Automation
The company stated, “Personnel costs will be reduced through savings and the relocation of around 2,000 jobs – also because manual tasks will be performed by increased automation in future.”
A significant portion of the savings will be derived from modernizing and upgrading outdated IT systems. Despite these cost-saving measures, Vodafone Germany will continue to invest in high-growth areas such as cloud services and corporate client business.
Challenges and Changes
Vodafone, a subsidiary of British telecom giant Vodafone, faced challenges in Spain and Italy, leading to the decision to sell its Italian operation to Swisscom. Earlier this month, the company announced leadership changes in Germany, appointing Ahmed Essam from Vodafone UK as the new Executive Chairman for Germany and Chief Executive for European Markets.
