Vodafone Group has announced that it is reorganising its corporate structure with a view to enabling ‘continued improvement in the delivery of [its] strategic goals’. With the new structure to become effective as of 1 October 2010 the UK-based telecoms giant has said that the changes will allow it to focus on key commercial and financial priorities and to simplify managerial governance.
Under the proposed changes the main restructuring will see the group simplify accountability for it subsidiaries with the creation of two ‘operating regions’: Europe, which will include operations in European countries in addition to the Czech Republic, Hungary, Romania and Turkey; and Africa, Middle East and Asia Pacific, which will include Australia, New Zealand and Fiji. Further, Vodafone said that the group’s CEO, CFO and Strategy & Business Development Director will be responsible for overseeing strategies relating to other Vodafone investments, such as Verizon Wireless, Polkomtel and Bharti Holding, which will no longer be held under the new regional structure. Two further units are to be created: Group Commercial, which will include the previous activities of Group Marketing, Vodafone Business Services, Vodafone Global Enterprise and Partner Markets; and Group Technology, which will oversee all of the company’s technical activities.
In separate but related news, the Financial Times is reporting that the corporate restructure could act as a precursor to Vodafone disposing of some of its minority stakes. With the UK outfit coming under pressure from investors to divest minority stakes and return the money to investors, Verizon Wireless has been mooted as one possible operator which Vodafone could look to exit, particularly as it has not received a dividend from the US cellco since 2005.