Vodafone has raised its profit target after wielding the axe on thousands of roles across Europe in the first half of the year.
The telecommunications giant said it had cut 3,000 roles in the region between April and September 2026, helping drive savings of €200m (£167m).
The FTSE 100 group also confirmed it would cut an additional 2,300 jobs in Germany over two years as it looks to turnaround performance in the market. Earnings fell 2.4 per cent in Germany during the first half.
Group chief executive Margherita Della Valle said operations in the market were “not yet where it needs to be”.
But the firm upgraded its full-year targets across earnings and cash flow after revenue jumped on the consolidation of Safaricom, Vodafone Three and Telekom Romania. Group-wide income increased 11.4 per cent to €21.9bn.
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SUBSCRIBE HEREThe firm said it expected earnings before tax to come in at €13.2bn to €13.4bn for the year, following a previous range of €13.0bn to €13.3bn. Cash flow was upgraded to €2.8bn to €3bn.
Vodafone sets sights on more cost-cutting
Vodafone reported 6.4 per cent growth in adjusted earnings to €6.45bn for the first half. But this was caveated with a €3.6bn statutory net loss after a near €5bn impairment in Germany, driven by government bond yields and lower cash flows, and the derecognition of €2.2bn in UK deferred tax assets.
At group level, revenue increased 11.4 per cent to €21.9bn after the consolidation of brands Safaricom, Vodafone Three and Telekom Romania.
In the UK revenue grew 10.2 per cent to €4.9bn, driven by the Three UK merger that was completed in May 2025.
The group hiked its cost-saving target to £1bn in annual savings by 2032 in October as it looks to unlock additional profitability from the Three merger.
The upgraded target came just over two months after Vodafone completed a £4.3bn buyout of CK Hutchison’s remaining 49 per cent stake in the business, giving it full control of Britain’s largest mobile operator.
Vodafone also set new financial targets for the merged company, including mid-to-high single-digit annual growth in adjusted earnings between 2025 and 2032 and plans to more than triple operating free cash flow over the same period.