Vodafone Group chief executive Margherita Della Valle said the company is making progress with its cost-cutting strategy, though she warned that the telco’s biggest market, Germany, still has some work to do.

The telecom giant announced back in May that it’s looking to cut more than €2 billion ($2.24bn) in annual costs across Europe and shared operations by 2030.

The company said it as made some substantial progress with this target as it reported its first-half revenue figures.

During H1 of FY27, Vodafone said it was able to deliver more than €200 million ($224m) of the planned savings, which included €50m ($56m) in synergies in its UK business.

Further savings have come from trimming down its overall workforce numbers, which has seen the company shed 3,000 roles across Europe and its shared operations so far this financial year.

The company recently increased its cost savings target for its UK unit VodafoneThree to £1 billion ($1.34bn) by its 2032 financial year from its initial £700m ($939m) target by FY2030.

However, further cuts are set to come at the telco, with Vodafone also announcing plans to cut an additional 2,300 jobs in Germany, the company’s largest market.

“I am very happy about our overall group performance, but Germany is not yet where it needs to be,” said Della Valle. “We have a clear action plan in progress, which is structurally simplifying our German operations and improving customer satisfaction across all of our services.”

Her reference to Germany’s performance is noted given the company booked an €4.85bn ($5.44bn) impairment on its German unit.

During H1, Vodafone Group reported a loss of €3.6bn ($4bn), due to the impairment, plus a write-down of deferred tax assets in the UK of €2.2bn ($2.47bn) following the buyout of CK Hutchison Three from VodafoneThree.

The revenue numbers were more positive for the group, however, with Vodafone reporting revenue of €21.9bn ($24.5bn), up 11.4 percent year-on-year.

Vodafone attributed this to strong service revenue growth, plus the consolidation of its Safaricom, VodafoneThree, and Telekom Romania units.

Türkiye (Turkey) was the carrier’s strongest-performing segment, with organic service revenue growth of 32.8 percent, while Africa was up 13.4 percent over the course of the first half.