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Vodafone Germany to cut 2,000 jobs in revamp
Global Banking & Finance Review®
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FRANKFURT (Reuters) -Vodafone Germany aims to save around 400 million euros ($434.48 million) over the next two years as part of a restructuring that will hit some 2,000 jobs, the company said on Tuesday.
FRANKFURT (Reuters) -Vodafone Germany aims to save around 400 million euros ($434.48 million) over the next two years as part of a restructuring that will hit some 2,000 jobs, the company said on Tuesday.
The move is part of a cost-cutting drive announced nearly a year ago which will result in the loss of some 11,000 jobs worldwide.
“Personnel costs will be reduced through savings and the relocation of around 2,000 jobs – also because manual tasks will be performed by increased automation in future,” it said.
A large part of the savings will be come from switching off and updating outdated IT structures, said the company, a unit of British telecoms giant Vodafone.
However, investment in high-growth areas such as the cloud and corporate client business will be strengthened, it said.
The mobile phone group expanded across Europe in the first decade of the century, but has struggled in Spain and Italy and has agreed to sell its Italian operation to Swisscom.
Earlier this month, Vodafone said it would replace its boss in its largest market of Germany, Philippe Rogge, with Vodafone UK’s Ahmed Essam in a new role of Executive Chairman Germany and Chief Executive European Markets.
($1 = 0.9206 euros)
(Reporting by Hakan Ersen, Writing by Miranda Murray and Madeline Chambers, Editing by Rachel More)
Cost-cutting refers to measures implemented by a company to reduce its expenses and improve profitability. This can involve layoffs, reducing operational costs, or streamlining processes.
Corporate strategy is a plan that outlines how a company will achieve its goals and objectives, including decisions on resource allocation, market positioning, and competitive advantage.
Automation is the use of technology to perform tasks without human intervention. It can increase efficiency, reduce labor costs, and improve accuracy in various processes.
Restructuring is the process of reorganizing a company's structure, operations, or finances to improve efficiency, adapt to market changes, or address financial difficulties.
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