Vodafone to cut or relocate 2,300 positions in Germany — Der Spiegel

Telecommunications company Vodafone plans to cut or relocate around 2,300 jobs in Germany over the next two years. This represents more than 19% of the company’s approximately 12,000 employees in the country, meaning the changes will affect nearly every fifth position, Der Spiegel reports.

Cost cuts and AI

Vodafone’s head in Germany, Marcel de Groot, informed employees about a savings and restructuring program. The company explains it by the need to simplify its structures and strengthen its position after years of significant customer losses.

In addition to cutting spending on materials and operations, Vodafone intends to reduce personnel costs. Some tasks are planned to be transferred to artificial intelligence, expanding its use in the company’s operations.

According to de Groot, Vodafone has stabilized its business over the past two years, is regaining momentum in the corporate customer segment, and is improving its products, networks, and services. At the same time, he stressed that this is insufficient because of fundamental and rapid changes in the market.

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Competition in the telecommunications market

Vodafone also intends to invest in promising areas, including fiber-optic networks, cloud services, and cybersecurity solutions for business customers.

The company had been losing market share in the fixed internet and broadband segments. The abolition in Germany of the Nebenkostenprivileg for cable television also put additional pressure on profitability, intensifying competition for millions of television customers.

Vodafone’s competitor, O2 Telefónica, previously also announced a savings program: the company plans to cut 1,100 jobs and close 60 of its 800 O2 stores.