Vodafone Germany has outlined plans to achieve approximately 400 million euros ($434.48 million) in savings over the next two years through a restructuring initiative that will impact approximately 2,000 positions, the company announced on Tuesday.
This move forms part of a cost-cutting strategy unveiled nearly a year ago, which is anticipated to lead to the elimination of roughly 11,000 jobs globally.
The company explained that personnel costs will be reduced through a combination of savings measures and the relocation of around 2,000 roles, with increased automation expected to supplant manual tasks in the future.
Significant portions of the savings will be derived from the deactivation and modernization of outdated IT infrastructures, according to the telecommunications firm, which operates as a subsidiary of the British telecommunications conglomerate Vodafone.
Nevertheless, investments in high-growth sectors such as cloud computing and corporate client services will be bolstered.
While Vodafone experienced expansion across Europe during the initial decade of the century, it has encountered challenges in certain markets such as Spain and Italy. Recently, the company announced its decision to divest its Italian operations to Swisscom.
In a leadership transition earlier this month, Vodafone revealed plans to appoint Ahmed Essam, currently serving as Vodafone UK’s executive, to the role of Executive Chairman of Germany and Chief Executive of European Markets, replacing Philippe Rogge as the head of its largest market in Germany.
