VodafoneZiggo, the Dutch telecommunications provider, has announced a significant workforce reduction, cutting approximately 400 jobs as part of a reorganization plan aimed at addressing declining revenues and customer losses. This decision, confirmed by a company spokesperson, was first reported by NU.nl and comes in the wake of a disappointing financial performance.
Of the 400 positions being eliminated, around half will be through firings, while the remainder will result from contract expirations or retirements. The company, which currently employs about 7,000 people, emphasized the importance of handling this transition with care. “We realize that this will have a big impact on our employees, and we are making every effort possible to support all the people involved in a careful, respectful, and transparent way,” a spokesperson stated.
The reorganization is part of a broader strategic plan intended to ensure the long-term success of VodafoneZiggo. The company has been facing challenges in recent quarters, including a significant drop in both turnover and profits. In the last quarter alone, VodafoneZiggo's turnover fell by 5.6 percent to €927 million, while profits decreased by 10.8 percent to €408 million.
Customer retention has also become a pressing issue for the telecom giant. VodafoneZiggo reported a loss of 40,000 customers in the last week, contributing to an overall loss of about 100,000 internet subscription customers throughout 2024. This trend has prompted the company to rethink its service offerings, leading to a reduction in the number of internet subscription packages and adjustments to their pricing structure.
Liberty Global, VodafoneZiggo's parent company, indicated that the recent customer losses were part of a larger trend, noting that the company had lost tens of thousands of customers in the previous quarter as well. In light of these developments, Liberty Global has called for a more resilient operational structure to better respond to the rapidly changing needs of customers.
As VodafoneZiggo embarks on this reorganization, the company aims to simplify its operations and allocate resources more effectively. “To make this possible and secure our long-term success, we are simplifying our organization and deploying people and resources where they are most needed,” the spokesperson explained.
The impending job cuts are expected to affect various departments, although the specific areas impacted have not yet been disclosed. The works council has yet to ratify the reorganization plan, and discussions are ongoing about how to best support affected employees.
In summary, VodafoneZiggo's decision to cut jobs comes as the company grapples with declining revenues and a shrinking customer base. The strategic reorganization is aimed at positioning the company for future success, but it also represents a significant shift for its workforce.
As the telecommunications landscape continues to evolve, VodafoneZiggo's ability to adapt to these changes will be critical. The company is hopeful that its new strategic plan will not only stabilize its financial situation but also better meet the demands of its customers moving forward.
