Why is Vodafone laying-off hundreds of people globally?

Vodafone Idea (Vi), a telecommunication player has been reportedly planning to slash hundreds of jobs, mostly at its London-based headquarters, to cut costs in the global economic slowdown.

The Financial Times reported that this will be the company’s “biggest round of job cuts in five years”.

Vodafone has employed around 104,000 people across the world out of which around 9,400 people are based in the United Kingdom.

In November (2022) last year, the company said it will cut 1 billion euros ($1.08 billion) of costs by 2026.

Its CEO Nick Read stepped down in 2022 end, was replaced by chief financial officer Margherita Della Valle for an interim period.

Read stepped down as Group Chief Executive and as a Director of Vodafone on December 31, following which he will be available as an adviser to the Board until March 31, 2023.

He had said that cost savings measures would “be achieved through streamlining and simplification of the group”.

In a statement, Vodafone said it was reviewing its operating model, focusing on streamlining and simplifying the group.

“We will say more about the changes when we announce our third-quarter results on February 1,” said the company.

Earlier this week, the company agreed to sell its business in Hungary to a local IT company called 4iG and the Hungarian state for $1.82 billion. IndiaTV News