Vodafone Italia could axe 15 per cent of its workforce as part of a business restructure, prompted by increased pressure in the country’s mobile market.
In a statement, the company said it opened negotiations with trade unions on possible redundancies, with the aim of reaching a mutual commitment to “identify sustainable solutions for the affected individuals and the company as soon as possible”.
It added the cuts would affect staff throughout the company. Vodafone Italia’s workforce currently stands at 7,000.
A restructured business plan was presented to trade unions, added the company, with the aim of showing how the market has transformed in recent times.
The operator said there had been a “drastic fall in prices”, particularly in the mobile segment, due to extraordinary competitive pressures. A restructure is required to guarantee future sustainability and return to growth, it added.
Competition in Italy stepped up in 2018 with the entrance of France-based Iliad, which came to market with aggressive low-cost offers, a strategy that proved successful in its home market.
Iliad’s strategy forced rivals including Vodafone Italia and Telecom Italia to slash prices. Vodafone Italia also responded by launching discount brand Ho, offering higher data allocations at a lower cost.Subscribe to our daily newsletter Back