Vodafone Germany plans to cut about 2,300 jobs over the next two years, affecting roughly 20% of its approximately 12,000 employees in the country. The restructuring is intended to lower costs and improve competitiveness, and was communicated to staff by Vodafone Germany CEO Marcel de Groot.
AI and automation are set to take a larger role in Vodafone’s internal operations, including the following areas:
- Analysis of network issues
- Management of advertising campaigns
- Selected customer-support activities
The operator also plans to more closely integrate its commercial and customer-relations departments. IT teams will work directly with the residential and business divisions, a change Vodafone says should simplify operations and shorten the time needed to resolve requests.
Vodafone attributes the overhaul to mounting pressure across the German telecom market. The company cites several factors affecting profitability:
- Intense competition in mobile services
- A declining TV market
- Competition in fiber-optic broadband
- Inflation
The company said it has stabilized fixed-service revenue and returned its business segment to growth, but considers further changes necessary. The job reductions will not halt investment in key technology and network areas.
- Artificial intelligence
- IT infrastructure
- Fiber-optic networks
- Cloud services
- Security
- Digital channels
Vodafone says it will pursue socially responsible solutions for the workforce reduction. Detailed talks with employee representatives on the new organizational structure are scheduled to begin early next year.
