Vodafone Expected to Announce Job Cuts This Week

Vodafone is expected to announce a series of cost cuts aimed at generating savings of £1 billion (US$1.6 billion) a year - and could leads to substantial job cuts in its European workforce. The company is also expected to report that sales have remained difficult in its UK and Spanish markets - where the company warned of problems earlier this year.

"Whether they set a target now or in May, there will have to be a cost plan," Terence Sinclair, telecoms analyst at Citigroup told the Sunday Times newspaper. "£1 billion is just 3% of sales."

On Tuesday the company is expected to post a half-year operating profit of £5.7 billion on sales of £19.8 billion.

Vittorio Colao took over at the top of the firm in July from Arun Sarin, who had already embarked on service consolidations following a series of acquisitions by his predecessor, Sir Chris Gent.

On the web: Sunday Times

Posted to the site on 9th November 2008