Vodafone announced on Wednesday that it has cut 3,000 jobs across Europe in the first half of the fiscal year. This move will help save €200 million (£167 million) in costs. The telecommunications company also plans to cut an additional 2,300 positions in Germany over the next two years. This is part of a broader strategy to improve performance in that market. Group chief executive Margherita Della Valle said that operations in Germany are "not yet where it needs to be."
Key Details
The job cuts have allowed Vodafone to raise its full-year earnings forecast. The company now expects earnings before tax to reach between €13.2 billion and €13.4 billion (£10.8 billion to £11 billion). This is an increase from a previous estimate of €13 billion to €13.3 billion (£10.7 billion to £10.9 billion). Group-wide revenue rose 11.4% to €21.9 billion. This growth was driven by the consolidation of brands like Safaricom and the merger with Three UK, which was completed in May 2025.
Background
Despite the positive revenue growth, Vodafone reported a statutory net loss of €3.6 billion. This loss was due to a €4.85 billion writedown in Germany and other impairment charges. The company aims to cut over €2 billion (£1.64 billion) in annual costs across Europe by 2030. Della Valle stressed that the company is focused on simplifying operations and improving customer satisfaction.
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Vodafone's restructuring and job cuts could affect investor sentiment in the telecommunications sector. This may particularly influence shares of European telecom companies. The company's upgraded earnings outlook could lead to more interest in its stock as it seeks to boost profitability. Watch for further updates on Vodafone's performance in Germany and any new cost-cutting measures in upcoming earnings reports.
Based on reporting by: cityam.com, standard.co.uk