Vodafone Lays of 11,000 Employees

By: Aman Singh

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Updated on: 16-May-2023

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Currently, Vodafone employs approximately 104,000 individuals worldwide. The company plans to complete the process of employee layoffs over a period of three years. The decision to downsize is a result of the company's low income, with earnings standing at 1.3 percent (€14.7 billion) below the expected range of €15-15.5 billion. Factors contributing to this decline include higher energy costs and underperformance in Germany's commercial sector. The company predicts further revenue decrease next year, to €13.3 billion.

The impact of Vodafone's decision may also be felt in India, where the company operates closely with Idea. The joint venture, Vodafone Idea, has been facing financial difficulties and running at a loss. While the Birla Group has pledged to strengthen this partnership, Vodafone Idea's path remains challenging due to its substantial debt burden. The repercussions of Vodafone's decision in India, including potential layoffs, will depend on the Birla Group's consent and subsequent decisions.

Although Vodafone's announcement has significant implications, the company's stock performance has remained relatively flat. The UK-based company's stock closed at 90.16 GBX on May 15. In India, Vodafone Idea's stock has seen a modest increase of over 1.5 percent, with the company's shares trading at Rs 7.21.