Vodafone set to shed jobs in £1bn cost-cutting programme

Mobile phone company Vodafone is believed to be slashing hundreds of jobs as it looks to cut costs by £1 billion by March 2011.

However, the company, which has a UK workforce of 10,000, has declined to comment on any job cuts.

The economic downturn has led to other communications companies cutting costs as BT, Cable & Wireless and Virgin Media are all reducing headcount.

It was believed that mobile phone companies would weather the downturn as analysts deemed mobile phones to be essential items, however, this is proving not to be true.

According to a study carried out by Forrester Research, the global research group, the economic downturn will see the “insatiable increase in mobile usage slow”.

Trading has deteriorated for Vodafone and it has been hit by falling sales of handsets. Nokia, which is the world’s largest manufacturer of mobile phone handsets, has warned of a 10% fall in the handset market this year.

Vodafone, which has a global workforce of 80,000 people, recently announced plans to merge with rival mobile carrier Hutchison Whampoa, owner of the “3” brand. It is hoped that the joint venture would boost Vodafone’s performance on the continent.

Story link: Vodafone set to shed jobs in £1bn cost-cutting programme