Vodafone accelerates cost-cutting plan

Vodafone, the mobile phone operator, will accelerate its 1bn cost-cutting plan in response to the weakening European market.

Vodafone, the mobile phone operator, will accelerate its £1bn cost-cutting plan in response to the weakening European market.

The company has posted a pre-tax profit fall of 53.5% to £4.2bn in 2008 compared to £9bn a year earlier. It has already been forced to write-off £5.9bn in the 12 months to the end of March and the losses have been mostly attributed to its Spanish operations.

Vodafone has also upgraded its plan to save £500m by 2010 to £650m.

Earlier this year it announced plans to axe around 500 jobs in the UK, including losses at its head office in Newbury.

In a statement Vodafone says: “In Europe and central Europe, recent significant declines in GDP and continued competitive intensity will make operating conditions challenging in the 2010 financial year.”

It adds that the shaky economic climate and rising unemployment rates in Europe means that it is forecasting operating profits for the 2009/10 year to reach up to £11.8bn.

In March, Vodafone UK made Shan Henderson, its head of mobile advertising and industry development, redundant 

The company merged his responsibilities into a global position and has since been taken on by Erik de Kroon, head of marketing for internet discovery at Vodafone Group.

Recommended

Thomson Local unveils new website

Marketing Week

Thomson Local has unveiled a raft of new features on its site, ThomsonLocal.com, as part of its plan to bolster its online business. The first of the changes sees users given the ability to rate and review local businesses listed on the site via a five star voting system. Users can score advertisers against key […]

Imagine Fashion sets its sights on luxury goods

Marketing Week

Luxury brands are to have a new vehicle for exposure with the launch of Imagine Fashion, a free online and mobile video publication. Imagine Fashion will be devoted to luxury and fashion brands and is set to launch at the end of this year. It has appointed BLM Red, the specialist arm of Arena BLM, […]

Allianz in golf deal

Marketing Week

General insurer Allianz is to sponsor the St Andrews Links Trophy tournaments as part of partnership with golf’s most famous course. The three-year deal with the St Andrews Links Trust, which manages the seven golf courses at the Links including the legendary Old Course, is the first such deal in the “Home of Golf’s” 600-year […]

Comments

    Leave a comment