12/11/2008 10:50:00 AM
Vodafone expected to start cost-cutting strategy in January 2009
Vodafone is expected to initiate a cost-cutting strategy from next month as new group CEO Vittorio Colao looks to fulfil his promise of saving £1bn.
It is thought that plans will be put in place over the course of 2009, which will affect Vodafone’s technology and supply-chain departments. Job cuts are expected.
Western Europe has been identified as, by far, the most costly of Vodafone’s operations. Italy, Spain and the UK are the most likely regions to face scrutiny.
Mobile first reported in February 2008 that a broad cost-cutting and ‘centralisation’ programme was underway, with the company looking to out-source logistics, procurement, IT and technology.
The operator has also moved handset buying in Europe to one central office in Luxembourg, as part of a tax saving initiative.