Marcel de Groot, head of Vodafone Germany, told staff on Monday that about 2,300 jobs are to be cut or relocated over the next two years as part of a comprehensive reorganization.

With a total workforce of around 12,000 employees in Germany, this means almost one in five jobs will be affected by the cuts.

The Dusseldorf-based network operator justified the package of measures by citing the need to streamline structures and restore the company’s competitiveness following years of falling customer numbers.

In addition to savings on material and operating costs, the human resources department in particular is expected to contribute to reducing costs. This is also to be achieved through the increased use of AI.

Vodafone has achieved a great deal over the past two years, said de Groot. “We have stabilized our business, are regaining momentum in the business customer segment and are constantly improving our products, networks and services.” However, he said that this was not enough as the market undergoes a “fundamental change at a pace we have never experienced before.”