Vodafone to cut 500 jobs

Vodafone Australia has confirmed that it will cut around 500 jobs, about 10 per cent of its workforce, as part of a restructure announced today by CEO Bill Morrow.

The struggling operator announced various measures to create a leaner business by prioritising future investment, optimising its workforce and simplifying internal processes.

Morrow said these included a significant reduction in the number of office roles across the country to “enable a more leaner, more effective operating model”, reviewing customer support processes and eliminating non-essential costs.

The company also planned to refocus investment priorities to provide customers with a widely available high-speed wireless data network supported by upgraded IT systems.

Morrow claimed that upgrades to the Vodafone network had enhanced services but more improvement was needed.

“Our customers are telling us they’re starting to see a difference, further demonstrated by a 50 per cent reduction in complaints to the Telecommunications Industry Ombudsman and notably, a reduction in network-related complaints,” he said in a statement.

“We are heading in the right direction but more needs to be done.”

The TIO’s annual report revealed that complaints about Vodafone increased in the first half of 2011 compared to the prior year, but the number of new complaints fell in the second second quarter of 2011.

Morrow added: “It is vital that we simplify the business to be efficient and to enable growth in the long term. We need to prioritise every dollar and internal action to count toward in improved customer experience and these change are designed to deliver just this.”

Vodafone is planning to expand its next-generation LTE infrastructure across select metropolitan areas in 2013 had completed the first test calls on its new 4G LTE network.

The company claimed it was on track to complete the remaining network upgrades to provide “greater consistency in delivering high-speed data services on smartphones and tablets.”

It also announced the appointment of Cliff Woo as chief technology officer and James Marsh as chief financial officer. Kim Clarke is also the new director of Vodafone’s consumer business unit and Brad Whitcomb is director strategy, transformation and business development.

In late May, Vodafone’s worldwide operation reported a 12.7 per cent drop in net profit for the year ending March 31, blaming poor economic conditions across Europe.