Vodafone Germany reports mixed results as it prepares for job cuts

Vodafone Germany has reported mixed half-year results, with revenue rising just 0.4% to around €5.5 billion ($6.2 billion) and operating profit falling 3.2% to €2.1 billion, the company said.

Higher costs for energy, buildings and technology partly explain the drop in operating profit. All of the revenue growth came in the first quarter of the 2026/27 financial year, while the second quarter showed a decline.

"We must improve our cost base and strengthen our revenues," a company spokesman said.

The British group's German subsidiary announced on Monday that it would cut almost 1 in 5 jobs by March 2029. The number of positions is to fall by 2,300 from the current figure of around 12,000.

The network operator justified the move by the need to simplify structures and make the company more efficient after years of significant customer losses. It also plans to make greater use of artificial intelligence (AI).

Vodafone has launched several savings programmes in recent years. Two years ago, the company still had around 15,000 employees.

At least a small ray of hope can be found in the newly published figures for Vodafone's mobile business. After the number of mobile contract customers fell by 85,000 in the first quarter, the company recorded a gain of 10,000 in the second quarter, to 28.7 million.

However, revenue in the segment fell despite this small gain. Competition is fierce, and average prices were lower than before.

The Dusseldorf-based company said that, according to its own surveys, customers' willingness to recommend Vodafone is rising.

One issue the firm is facing is that customers who previously received internet via Vodafone's TV cables have switched to fibre internet from other providers, moving away from the relatively old TV technology.

Broadband customer numbers fell by around 100,000 in each of the past two quarters. At the end of September, there were still around 9.7 million such customers.