Vodafone Group Plc (ADR)(NASDAQ:VOD) - Getting rid of the Spain pain

Northern, WI 1/15/2013 (avauncer) - The world has been hit by an economic crisis of alarming proportions. Spain has been hit by 25 percent unemployment in the recession afflicted national landscape. Vodafone Group Plc (ADR)(NASDAQ:VOD) is using several aggressive tactics to severe its Spanish ties. In an attempt to maintain its second position in the cut-throat communications market, the company is drastically downsizing its Spanish workforce. An unidentified Vodafone Madrid spokesperson said in a telephonic interview that company representatives will be presenting labor unions with the lay-off plan.

Cutting off livelihood

A 1000 heads are set to roll (which amounts to 25 percent of existing staff) even as the England based Vodafone Group Plc (ADR)(NASDAQ:VOD) axed variable salaries in its Spanish outfit, by 10 percent. Apart from this, the numbers of work days were cut down to 15 per month. The company has been trying every trick in the cost-cutting book to hike its savings, thus taking away active employment and means of livelihood from its employees.  An unidentified UGT spokesperson revealed that large-scale lay-off plans are being planned in Vodafone Group Plc (ADR)(NASDAQ:VOD) Spain. Drastic cost-cutting measures have been brought into effect as Vodafone Group Plc (ADR)(NASDAQ:VOD) consumption has seen a downslide the world over.

Worldwide decline

The measures that have been employed in Spain will not necessarily bring about a significant change in the Vodafone Group Plc (ADR)(NASDAQ:VOD) fortunes as the Spanish market in itself is not a very large one and it does not hold a position of import in terms of overall global profits for the company. The Vodafone Group Plc (ADR)(NASDAQ:VOD) stock saw a 6.4 percent decline over the last annum. Italy, Portugal and Spain were the three countries most affected by the service revenue slump with the Spanish unit recording a drop of 11 percent in the 6 months ending September. Europe fared no better as there was a 6.4 percent decline in stocks over the past one year.

The shares of Vodafone Group Plc (ADR)(NASDAQ:VOD) were down by 1.20% to close at $26.27