Vodafone to Split into Three
April 9, 2006 - source: BWCS
Vodafone CEO Arun Sarin announced today that the global mobile giant will split itself into three new business units, each run by a new boss, as the company bids to drive more profits from expanding markets and cut costs in its mature ones.
According to Sarin, the company will create two new geographical divisions - one covering Europe and the other covering central Europe, the Middle East and the Asia Pacific area. A third unit, to be called New Business and Innovation, will be devoted to seeking out new revenue areas and looking for new products.
Thomas Geitner, the group's current CTO will take charge of the Innovation division, while Bill Morrow, former head of Vodafone KK in Japan will take charge of Europe. Paul Donovan, current CEO of "Other Vodafone Subsidiaries" will take the helm at the other geographical group, which will contain all of Vodafone's joint ventures, affiliates and investments. These include the company's stake in American business Verizon Wireless, a holding it has been under pressure from some shareholders to sell.
The reshaping of the company comes after weeks of internal wrangling over Vodafone's future direction. Following the sale of Vodafone KK, the group plans to return as much as £6 billion to shareholders.
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