Vodafone to close 100 stores and cut 5,000 jobs

Vodafone may cut 5,000 jobs and close 100 stores as part of the company's cost reduction programme, German website Manager Magazin reported Wednesday.

Vodafone may cut 5,000 jobs and close 100 stores as part of the company's cost reduction programme, German website Manager Magazin reported Wednesday.

The group is undergoing a massive restructuring to improve efficiencies and boost profits.

In April it announced plans to outsource service staff as a way of keeping a tight rein on costs.

The company is now said to be stepping up its strategy with plans to close down a network of Vodafone shops, according to employee representatives who voiced their outrage at its impact to jobs.

"We expect that from job cuts, restructuring and potential loss of wages, up to 5,000 employees will be affected," said Siegfried Baldwin of the IG Metall union.

"We are not prepared to accept this."

This week the company unveiled a new a carrier services business after its takeover and integration of Cable & Wireless Worldwide.

The new unit, Vodafone Carrier Services, was launched at the International Telecoms Week in Chicago which was due to wrap up Wednesday.

The group has also announced that it is to receive more than £2.0bn via a dividend from its stake in its US wireless joint venture with Verizon.

Verizon Wireless, which has been at the centre of takeover rumours by Verizon for months, is paying a total of $7.0bn (£4.6bn) to shareholders at the end of June.

Shares rose 0.88% to 195.20p at 16:47 Wednesday.

RD

Recommended

Three sustainable stocks that are doing well by doing good
Share tips

Three sustainable stocks that are doing well by doing good

Professional investor Peter Michaelis of the Liontrust Sustainable Investment Team picks three stocks to buy that are helping to create a cleaner, saf…
26 Jul 2021
Share tips of the week – 23 July
Share tips

Share tips of the week – 23 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Jul 2021
Will Zoom’s $15bn purchase help it expand?
Tech stocks

Will Zoom’s $15bn purchase help it expand?

The videoconferencing platform became a household name during the pandemic, but it now needs new sources of growth. Alex Rankine reports
23 Jul 2021
Philip Morris goes “beyond nicotine”
Stocks and shares

Philip Morris goes “beyond nicotine”

US tobacco giant Philip Morris International has agreed to pay £1bn for British inhaler specialist Vectura.
23 Jul 2021

Most Popular

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism
Economy

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism

Russell Napier talks to Merryn about financial repression – or "stealing money from old people slowly" – plus how Asian capitalism is taking over in t…
16 Jul 2021
Why the UK's 2.5% inflation is a big deal
Inflation

Why the UK's 2.5% inflation is a big deal

After years of inflation being a financial-assets problem, it is now an “ordinary things” problem too, says Merryn Somerset Webb. But central banks st…
16 Jul 2021
Three companies that are reaping the rewards of investment
Share tips

Three companies that are reaping the rewards of investment

Professional investor Edward Wielechowski of the Odyssean Investment Trust highlights three stocks that have have invested well – and are able to deal…
19 Jul 2021