The management of Vodafone Italia announced on Monday that it has started consultations with the unions in order to eliminate 1,000 jobs, with the aim of reducing its operating costs and facing strong competition in the telecommunications sector in the peninsula.

“The drastic reduction in prices” caused by “extreme competitive pressure” has led to “a large reduction in turnover and margins (in terms of profit) in the telecommunications sector”, while “the energy crisis” is weighing on it as well, he said. the group in its announcement. These problems put his “development plans” at risk, he continued.

The British telephone group employs around 5,700 people in Italy.

Vodafone Italia recorded a 1.8% drop in turnover to €4.8 billion in 2021-2022.

The parent company rejected in February 2022 an offer of 11.25 billion euros from Iliad’s French competitor for the acquisition of Vodafone Italia, judging that this development would not be “in the interest of its shareholders”.

In Italy, Vodafone accounts for 28.5% of the mobile market and 16% of the fixed market.

Telecoms industry executives have called for consolidation in the European telecoms market to reduce competition and boost profitability as big investments are made in fifth-generation (5G) and fiber optic networks.

In terms of contract prices, Italy and France currently record “the lowest” levels “among major Western countries”, according to a study by the firm Arthur D. Little.