MELBOURNE--Vodafone Group PLC's (VOD.LN) Australia unit is set
to cut around 500 jobs as the telecommunications provider seeks to
streamline its business and win back customers after network
problems last year saw consumers turn to other providers.
A Vodafone spokesman told Dow Jones Newswires that local media
reports that around 500 office jobs, about 10% of the company's
workforce, would be cut as part of the structure were "fairly close
to the mark."
The company, which is a joint venture between Vodafone Group
Plc. (VOD.LN) and Hutchison Telecommunications Ltd. (HTA.AU), said
in a statement it had embarked on a program to "optimize" the
company by reducing office roles, eliminating non-essential costs,
refocusing investment priorities and improving customer
service.
"Vodafone will be a leaner, more effective business that is
completely focused on what our customers want now and for the long
term," Chief Executive Bill Morrow said in the statement.
Vodafone has suffered an exodus of customers since its network
was hit by reliability issues. Around 780,000 customers have left
Vodafone in the 18 months to June 30.
Many of those customers have gone to Australia's two largest
telecommunications providers, Telstra Corp. (TLS.AU) and SingTel's
(SGAPY) Optus.
Vodafone has spent 1 billion Australian dollars (US$1.04
billion) on upgrading its network and says on its website it plans
to invest another A$700 million by the end of calendar 2012.
Write to Gavin Lower at gavin.lower@wsj.com
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