Vodafone is undertaking a substantial restructuring under new CEO Margherita Della Valle as the company seeks to restore consistent performance and competitiveness.
As part of a wide-ranging turnaround plan, Vodafone has announced it will reduce its European workforce by about 11,000 roles over the next three years. These reductions will affect both corporate headquarters functions and local operating companies, and are intended to simplify the organisation, cut complexity, and create a more agile structure aligned to strategic priorities.
Vodafone sees its business segment as a key growth opportunity. Although business customers currently represent roughly 27 percent of group service revenue, that segment posted 2.6 percent service revenue growth in the last fiscal year. The company plans to sharpen its focus on business services to capture demand for high-speed, low-latency connectivity, cloud-based applications, and enterprise 5G use cases.
Demand for 5G is rising across industries, and Vodafone aims to position itself as a leading provider of next-generation connectivity and related services for enterprises. Management believes targeting business customers and reallocating resources toward these opportunities will help drive future growth.
At the same time, Vodafone faces challenges on the consumer side. European Consumer operations—about 51 percent of group service revenue—saw service revenue decline by 1.1 percent. To reverse this trend, Vodafone plans to simplify and standardise the customer experience, invest in customer care and journey improvements, and reinvigorate the brand through targeted investment.
Della Valle has emphasised three priorities: customers, simplicity, and growth. By focusing on these areas, the company intends to deliver better, more predictable service and rebuild trust with consumers while supporting expansion in more lucrative enterprise offerings.
Financially, Vodafone’s full-year results showed a modest increase in group revenue, supported by strong performance in Africa and higher equipment sales. However, adjusted earnings before interest, tax, depreciation and amortisation after leases (EBITDAal) fell by 3.6 percent to €14.67 billion, reflecting margin pressure and the need for operational improvements.
The restructuring is designed to reduce costs and free up investment for customer experience, brand building, and growth initiatives—particularly in business services and 5G. Vodafone expects the changes to deliver a simpler operating model better suited to respond to competitive pressures and evolving customer expectations.
The broader telecommunications market remains intensely competitive and rapidly evolving. Vodafone’s strategy highlights a shift toward prioritising enterprise customers, streamlining internal operations, and enhancing the consumer proposition to stabilize revenue and restore momentum.
By simplifying processes, redirecting investment toward customer-facing improvements, and capitalising on increasing demand for business connectivity and 5G solutions, Vodafone aims to strengthen its market position and achieve sustainable growth in the changing telecoms landscape.
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