Vodafone to shed 500 jobs in the UK

Mobile phone giant Vodafone today announced it is cutting around 500 jobs in the UK.

Vodafone today announced it is cutting around 500 jobs in the UK as part of efforts to reduce costs.

The cuts to the 10,000-strong UK workforce come as the group looks for £1bn (€1.1bn) of cost savings worldwide by March 2011.

Vodafone has seen conditions worsen in the UK and other key markets as the recession has deepened, hitting sales of handsets.

The job losses will take place across the business, with 170 going from Vodafone's headquarters, but retail staff are not involved.

Employees affected by the decision were informed today and some may leave immediately, while others will undergo a consultation process, according to the company.

A spokeswoman said: “Vodafone UK has today announced reductions to its operating costs in order for it to compete more effectively in the UK market.

“As customers look for best value in their mobile services, Vodafone intends to reduce its cost base whilst continuing to invest in new products and services to meet changing customer needs.”

Vodafone said it was creating around 100 new roles this year as it develops services, with investment focused on its retail estate and online offerings.

The group first unveiled plans for cost reductions last November as part of a strategy to offset the impact of the recession on consumer spending.

Vodafone expected to save £500m (€567m) by March 31 2010 and was trimming costs across the group.

Vodafone said there are no further cuts planned in its Irish operations and today's announcement concerns its UK operations which are completely separate.