In yet another instance of a multi national company being affected by this global recession, Mobile phone giants Vodafone announced that it is going to cut down its work force as they are going to cut around 500 jobs in the UK, this comes in the wake of their new cost cutting policy. This cut has come to the strong 10,000 UK workforce that the company has and the mobile giants are looking forward to save 1bn pound of cost worldwide by March 2011.
The Newbury based company – Vodafone has been badly affected by this recession and have seen their condition getting worse in the UK and other key markets with the sales of the handsets being hurt the most. The cutting of the work force will take place across all units with 170 going from the Vodafone headquarters but in all this the retail staff will not be involved
Almost all the employees who were going to be affected by this decision are informed by the company while some of the employees will leave immediately while some may leave as a delayed consultation process is decided by the company. These presumably harsh decision was taken by the company to compete in a more effective manner in the UK market, as the customer wants the latest and the best in the mobile services, Vodafone intends to do this by inventing new products and also by not increasing cost, hence being able to meet with the growing customer needs.
Vodafone had earlier revealed its plans of cost cutting last November as a part of their strategy to deal with the recession which was going to affect the spending capacity of the consumers. And Vodafone is also expected to save 500mn pounds by March end next year and they are also reducing their cost across various units. Vodafone has a customer base of 19.1 million in the UK, recorded a revenue of 10.47bn pounds for a period of three months up to December 31st which is up by 14.3% with exchange rate movements not being covered.
Thus it is very clear that the effects of this recession are not going to end very soon.
