Vodafone (LON:VOD) is planning to cut up to 1,200 jobs from its Spanish business, Reuters has reported. The move will come with the unit facing stiff competition.
Vodafone’s share price has climbed higher in London this morning, having gained 0.72 percent to 154.84p as of 09:00 GMT. The advance is largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.78 percent higher at 6,997.01 points. The group’s shares have lost just under a third of their value over the past year, as compared with a near 10-percent drop in the Footsie.
Telco to slash jobs in Spain
Reuters reported yesterday that Vodafone had said that it was planning to cut up to 1,200 jobs from its Spanish business. The telco, however, declined to give further details ahead of talks with labour representatives expected to begin at the end of the month.
The move comes after the blue-chip group warned in November that it was planning to trim costs in Spain and Italy to respond to challenging business conditions. The Times meanwhile noted in its coverage of the news that the market in Spain had been disrupted by Másmóvil, a low-cost competitor, while the pressure on Vodafone had been compounded by a dip in customers after it decided to stop wholesaling football content from Telefónica, the Spanish rival which owns the O2 network in the UK.
Analysts on Vodafone
Macquarie reaffirmed Vodafone as an ‘underperform’ on Wednesday, valuing the shares at 125p. According to MarketBeat, the blue-chip telco currently has a consensus ‘hold’ rating and an average price target of 209.45p.
Earlier this week, Royal Bank of Canada lowered its rating on the blue-chip telco, flagging concerns over the group’s dividend which they see as ‘unsustainable’.