Skip to content Skip to Search
Skip navigation

Vodafone cuts 11,000 jobs after securing deal with e&

Vodafone Group CEO Margherita Della Valle Reuters/Vodafone
Vodafone Group CEO Margherita Della Valle

Vodafone Group announced it will cut thousands of jobs just days after it agreed plans for closer commercial ties with UAE-based e&.

Margherita Della Valle, Vodafone’s new group chief executive, admitted the company’s performance “has not been good enough” after reporting a small rise in full year sales to nearly $50 billion and a fall in pre-tax profits.

“Vodafone must change,” she added in a statement less than a week after announcing e& as a cornerstone shareholder.

The strategic relationship across Europe, the Middle East and Africa enables collaboration across a broad range of growth areas, as e& and Vodafone can benefit from each other’s geographic footprint. 

Paolo Pescatore, an analyst at PP Foresight, said that this was the start of a “long and painful journey” for Vodafone but he added that e& appears to have confidence in the company’s strategy which focuses on driving revenues, not only on cutting costs and driving greater efficiencies.

In March e&, formerly Emirates Telecommunications Group Company, increased its stake in Vodafone Group to 14 percent after initially purchasing 9.8 percent in May 2022.

“Behind the scenes, e& has been steadily increasing its stake which shows a strong endorsement in Della Valle and confidence in the future strategy,” Pescatore said. “Change needed to happen and she is moving quickly.

“Vodafone has an extensive presence across Europe and this remains an untapped opportunity for e&.” 

The deal includes jointly offering cross-border digital services to multi-national customers and public sector organisations. The firms may also adopt joint procurement.

The operators will work together on a technology roadmap as part of the agreement that sees e&’s CEO join the Vodafone board as a non-executive director.

Della Valle said: “This closer alignment allows us to capture opportunities in our respective markets and brings additional telecoms experience to our board.”

Hatem Dowidar, CEO of e&, added that it will “unlock opportunities for both companies”.

Vodafone said on Tuesday it will axe 11,000 jobs over the next three years – equal to around a tenth of its global workforce.

“My priorities are customers, simplicity and growth,” Della Valle said. “We will simplify our organisation, cutting out complexity to regain our competitiveness.” 

The telecoms giant has struggled with higher energy bills which are driving up costs and impacting its profits while also seeing weaker sales in European markets such as Germany, Italy and Spain.

By contrast, e& reported solid growth for 2022, netting a consolidated profit of more than $2.7 billion, up over 7 percent on the previous year.

e& also said its consolidated revenues surged to exceed $14 billion, a growth of nearly 5 percent year-on-year.

Latest articles

PIF's Starbucks shareholdings were cut almost by half from 6.3 million shares to 3.8 million

PIF slashes Starbucks stake as it cuts US stocks by $15bn

Saudi Arabia’s Public Investment Fund (PIF) has slashed its US equity holdings by 42 percent to $20.6 billion, including its stake in Starbucks, the global coffee chain that has suffered calls for a boycott as a result of the Gaza conflict. The latest US government data highlights funding challenges facing the Saudi giga-projects.  The filing […]

Tunisia olives

Soaring olive oil exports help Tunisia balance books

Tunisia’s soaring olive oil exports have almost doubled to close to $1 billion in just five months, helping it claw back its current account deficit.   However the increased revenues merely “paint over the cracks” and the country is still probably heading towards a sovereign default, according to an economic expert. Tunisia’s current account deficit narrowed […]

Iraqi prime minister Mohammed Shia Al-Sudani attends licensing rounds for 29 oil and gas exploration blocks at the oil ministry's headquarters in Baghdad

Falling oil prices deepen Iraq’s fiscal imbalances, says IMF

Iraq’s fiscal imbalances have worsened due to significant fiscal expansion and lower oil prices, according to the International Monetary Fund (IMF). “The ongoing fiscal expansion is expected to boost growth in 2024 at the expense of a further deterioration of fiscal and external accounts and Iraq’s vulnerability to oil price fluctuations,” the Washington-based fund said in […]

Saudi aluminium producer Talco is offering 12 million shares

Aluminium producer Talco announces Saudi IPO

Aluminium producer Al Taiseer Group Talco Industrial Company (Talco) is the latest entity to reveal initial public offering (IPO) plans in Saudi Arabia. The Riyadh-based company, which was set up in 2009, is offering 12 million shares, a 30 percent stake, on the Saudi Exchange (Tadawul) at a nominal value of SAR10 ($2.67) per share. […]