Announcement of job cuts follows large-scale corporate restructuring in European markets
Global telecom company Vodafone Group this week announced it will cut around 1,300 jobs from its Spanish operation, which equates to around 22% of the company’s workforce in Spain.
The move comes following Vodafone’s $8 billion acquisition of cable company Ono last year.
Addressing the staff reduction, Vodafone cited the Ono acquisition along with falling profits in Spain and directing capital to other investments.
Vodafone, headquartered in the United Kingdom, employs about 6,100 people in Spain, which has one of the highest unemployment rates in Europe.
This is just the latest restructuring within Vodafone as the company announced on July 21 changes to its executive-level organization designed to “simplify organizational processes, enhance management efficiency and accelerate decision-making.”
Taking effect on Oct. 1, the CEOs of Vodafone in Germany, Italy, the U.K. and Spain will all become members of the Group Executive Committee, which will report directly to Vodafone Group CEO Vittorio Colao.
Colao said, “These changes will simplify and streamline the management of our largest European markets and accelerate our strategic plans in those countries as convergence gathers pace and our Project Sprint organic investment program and focus on efficiency deliver visible results.”
He continued by referencing “the strategic acquisition and integration of large fixed-line businesses in the U.K., Spain and Germany.”
In Spain, Vodafone has seen a decrease in sales and profitability. Bloomberg reports that sales declined 5.5% last quarter as compared to the same quarter in 2014. Sales from mobile plans fell 9.5% while fixed broadband service grew 4.2%.
