Company wants to save: Vodafone is cutting 2,300 jobs in Germany

The mobile communications company Vodafone says it is under economic pressure. That's why the group is now reacting with tough measures.

Vodafone announces a far-reaching savings and restructuring program. According to Germany boss Marcel de Groot, 2,300 jobs are to be cut or relocated as part of a realignment of the group. A total of around 12,000 people currently work at Vodafone Germany - almost one in five is affected.

Vodafone wants to use the package of measures to simplify structures and strengthen the company. The company justifies the plans with a significant loss of customers. The package also contains measures to save material and operating costs. The reduction in personnel is to be compensated for by the increased use of AI.

Group: austerity package was not enough

The company has been undergoing cost-cutting and restructuring measures for two years. The desired results have not yet been achieved, said de Groot. "We have stabilized our business, are gaining momentum again in the business customer area and are getting better and better with our products, networks and services." However, the market is changing quickly, so further measures are necessary.

The Vodafone manager emphasized that competition is becoming tougher: "For us this means: What has worked so far does not automatically ensure our success tomorrow."

Administrative areas, management levels and dual structures, which were created, among other things, as a result of previous acquisitions such as that of the cable network operator Unitymedia, are particularly affected by the dismantling. Manual workflows and standardized processes will be increasingly automated in the future.

Investments in the cloud business planned

Despite the austerity package, Vodafone wants to continue investing in certain business areas. The company would like to position itself more strongly in the fiber optic as well as in the cloud and security business for business customers. The company says AI is intended to reduce costs in the company and strengthen sales in new business areas.

There is intense cut-throat competition in the German communications market. Vodafone had lost market share in the fixed network and broadband business. The elimination of the so-called additional cost privilege for cable television placed an additional burden on Vodafone, as this reignited competition for millions of TV customers. Since 2024, landlords have no longer been allowed to pass on the costs of cable connections to tenants.

The competition is also making savings: Vodafone's competitor O2 Telefónica had already implemented a savings program last summer. This year, 1,100 jobs are expected to be eliminated, roughly one in six jobs at O2. At the beginning of the year, the company had 6,820 full-time positions. Employees should leave voluntarily, for example through early retirement and severance pay. In addition, 60 of the 800 O2 shops are to be closed.