Vodafone to Cut 11,000 Jobs as Shares Fall Dramatically

It’s been a number of weeks since Margherita Della Valle was named the CEO of Vodafone Group, and she’s had about five months to evaluate the company’s situation as interim CEO. During this time the new CEO concluded that the company is due for a significant redesign, which includes the reduction of 11,000 positions over the next three years, starting at Vodafone’s U.K. headquarters and its operations in Germany and Italy.

“Our performance relative to major competitors has also not been good enough. This requires Vodafone to change. And by change, I mean a significant redesign of where we focus our efforts and how we organize ourselves,” Della Valle said in a Tuesday conference call with analysts.

The job cuts are the biggest in the history of the company, according to a Reuters report. The company employs about 100,000 worldwide.

Telco returns are among the lowest in Europe while the capital investment demands are high. But Vodafone needs to get back to the basics when it comes to winning over customers in the market, and that’s part of the roadmap to getting back on track, according to Della Valle’s presentation for investors.

For the fiscal year, Vodafone Group reported revenue increased by 0.3% to $49.8 billion driven by growth in Africa and higher equipment sales, offset by lower European service revenue and adverse exchange rate movements. Shares of Vodafone were down about 7% earlier this week, trading in the range of $10.43.