Vodafone wields the axe on 1,200 jobs to fund massive £700million cost-cutting crusade as earnings get a major boost

VODAFONE Group has axed 1,200 jobs across Europe as part of a huge £700million cost-cutting drive, even as the telecoms giant posted higher sales and profits. The cuts, made in recent months, span the firm’s European operations and shared services, as bosses push to slash costs and capital spending by 2030. Vodafone did not reveal how many UK roles have been affected, but said some of the reduction was down to natural attrition, where staff who leave are simply not replaced. Much of the shake-up follows Vodafone’s blockbuster merger with Three, completed last year, which created Britain’s biggest mobile network. Sign up for the Money newsletter Thank you! Since then, the firm has been busy merging the two brands, including sharing 5G networks to save money and boost coverage. The overhaul is being driven by chief executive Margherita Della Valle, who has focused efforts on the UK, Germany and Africa while quitting smaller markets elsewhere. In its latest results, Vodafone revealed service revenues hit €8.6billion (£7.4billion) for the first quarter, a jump of 10% year-on-year. On an organic basis, service revenue rose 5.2%, while adjusted earnings climbed 6.7% compared to the same period last year. The firm now expects full-year adjusted earnings of between €13billion (£11.1billion) and €13.3billion (£11.4billion), boosted by its recent takeover of Kenya’s Safaricom. However, in the UK, mobile service revenues dipped 0.7%, partly blamed on the scrapping of mid-contract price hikes following a regulatory crackdown by Ofcom. Most read in Money Vodafone lost 48,000 UK mobile contract customers, including business SIMs, in the quarter, but picked up 34,000 new broadband customers. Market analyst Mark Crouch, from Etoro, said: “For years, Vodafone has promised that its turnaround would eventually show through in the numbers. “This latest update suggests that promise is finally starting to become reality. “While the headline revenue boost was helped by the consolidation of Three UK and Safaricom, the stronger message is that the underlying business is beginning to build momentum.” Comment now