In an attempt to beat the intense competition and current economic turmoil, UK’s mobile phone giant, Vodafone, has announced cost-cutting plans worth GBP 1billion, which could lead to massive job-cuts, in next three years.
The company stated that its performance in UK was extremely poor during last six months, as its operating profits in the country plunged substantially to GBP 134million, and it dropped its annual forecasts for revenues to between GBP 39.7billion and GBP 38.8billion, which was previously projected within the range of GBP 39.8billion and GBP 40.7billion.
In addition, Vodafone attributed slow growth in emerging markets as one of the major cause of waning profits for the group.
In India, the growth of the company has declined to 36 percent in second quarter as against 46 percent in the first quarter, in spite of the fact that it has reduced its prices by up to 50 percent to lure the new customers.
While announcing the first interim results, Vodafone’s new CEO, Vittorio Colao, who recently took over from Arun Sarin, said, “I want to lead a company that is simpler, much faster, and a winning player in an exciting industry.”
He further stated that his focus would be primarily on improving performances and monitoring costs, rather than looking for acquisitions.