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.

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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

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