Vodafone confirms 500 UK job cuts

Savings intended to help the mobile phone giant "compete more effectively" in UK

Vodafone is cutting costs and jobs

Vodafone has confirmed it plans to cut 500 UK jobs.

Rumours began circulating widely yesterday that the mobile phone giant was due to announce large-scale lay-offs and a short statement from the company provided the details today.

"Vodafone UK has today announced reductions to its operating costs in order for it to compete more effectively in the UK market," said the statement.

"The majority of savings will be achieved by taking operating costs out of the business, however there will also be a reduction of approximately 500 jobs across the business. Staff affected by the decision have been informed today."

The cuts are believed to affect back-office jobs at the firm’s Newbury head office, as well as call centres around the country.

Vodafone’s most recent financial results, for the three months to 31 December, showed worldwide group revenue up 14 per cent to £10.5bn, but UK sales fell by 0.7 per cent to £1.2bn.

Chief executive Vittorio Colao said at the time that the firm had "made progress on our plans to reduce costs by £1bn by March 2011".