Vodafone has reported strong first-half growth across the group. Yet Germany remains its most difficult market. The company now plans to cut 2,300 jobs there under a fresh savings drive.
Chief Executive Margherita Della Valle said the operator has “turned a corner” in key German areas. However, she also admitted there is “much more to do.”
The new job cuts reflect deeper structural changes inside the business. The company said AI and automation now allow leaner operations. That may improve efficiency, but it also raises workforce concerns.
Germany is Vodafone’s largest market, so weakness there matters. The operator faces tough mobile competition and fiber-related legal issues. It also continues to lose mobile and TV customers.
Even so, German revenue rose 1% in the latest period. Adjusted EBITDAaL fell 2.4%, showing pressure on profitability. EBITDAaL measures earnings after leases and other key operating costs.
There are signs of improvement in some areas. Della Valle highlighted momentum in business services and consumer broadband. She said digital services now drive “real growth” in Germany.
These services include cybersecurity, cloud, and sovereign AI. Sovereign AI means systems designed around local data rules. This matters for enterprises and governments with strict compliance demands.
Still, analysts remain cautious. Paolo Pescatore of PP Foresight wrote that Germany remains a concern. “Fragile revenue growth, declining profitability and a €4.85 billion [US$5.44 billion] impairment underline the challenges,” he said.
The impairment relates to interest rate changes, according to the group. It adds another financial pressure point. It also shows how macroeconomic shifts affect telecom balance sheets.
Vodafone’s savings program goes beyond Germany. The group wants to save €2 billion by 2030. CFO Pilar López said 3,000 roles have already gone this year.
That follows 11,000 job cuts from an earlier savings program. The strategy may help margins and simplify operations. However, the scale of reductions may test morale and execution.
Elsewhere, the picture looks brighter. Africa delivered revenue growth of 37.4% in the first half. EBITDA also rose 52.8%, giving the group a major lift.
Vodacom has also moved to expand its African footprint. It agreed to buy a controlling stake in Safaricom for $2.1 billion. A Kenyan court has blocked part of the deal for now.
Group revenue climbed 11.4% to €21.9 billion. Adjusted EBITDAaL rose 6.4% to €6.5 billion. Growth came mainly from Africa, Türkiye, and business services.
Vodafone also raised its full-year guidance slightly. Its business division posted its strongest ever quarter. Della Valle said it focuses on “smart, secure and sovereign solutions” for business and government customers.
