New Vodafone (VOD.L) boss Margherita Della Valle said on Tuesday she would cut 11,000 jobs over three years to simplify the telecoms group and regain its competitive edge as it forecast a 1.5 billion euro drop in free cash flow this year.
The job cuts are the biggest in the history of Vodafone, which employs around 100,000 people across Europe and Africa, making it one of Britain’s best known corporate brands.
“Our performance has not been good enough,” said Della Valle, who was appointed permanently as CEO last month, adding: “My priorities are customers, simplicity and growth”.
Vodafone opened 4.5% lower, the biggest faller in the FTSE 100 and dropping to their lowest level since early January.
“Lacklustre performance has been something markets have come to expect from Vodafone of late, and full-year results didn’t buck the trend,” said Matt Britzman, equity analyst at Hargreaves Lansdown.