Vodafone Group has previously stated that it is looking to reduce its operating costs in Western Europe, particularly in Spain and Italy
Vodafone Group has announced that it will make up to 1,200 redundancies in Spain this year, reducing its workforce by 20 per cent.
Vodafone currently employs around 5,100 people in Spain and negotiations between Vodafone Group and the employees’ union representatives are expected to begin later this month.
"In the current market context, demand for services is increasing exponentially but prices aren’t: close to 50 percent of… memberships are associated with ‘low and medium cost’ offers," a statement from Vodafone read.
In November last year, Vodafone’s CEO, Nick Read, said that the company was about to embark on a multi-billion pound cost reduction initiative, to help slim down operational expense in western Europe.
“We expect that the rapid adoption of digital technologies will enable us to reduce operating expenses in our European operations … by at least €1.2bn euros by 2021, compared to 2018 levels,” said Read.
Vodafone Group posted a £6.8 billion loss for the first six months of the current financial year, as the company struggled with costs associated with its mega merger with Idea Cellular in India.
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