Vodafone to trim workforce

Vodafone Group, the world's largest mobile-phone company, plans to cut hundreds of UK jobs to reduce costs and protect earnings amid the economic slowdown, two people with direct knowledge of the plan said.

The firm aims to announce the measures on February 24, said the people, who declined to be identified because the plans are confidential. The jobs will be eliminated at Vodafone's UK operations, the people said, declining to give a precise number. Vodafone Chief Executive Officer Vittorio Colao, the former McKinsey & Co partner who took over in July, is pushing managers to eke out more profit from existing operations. Earlier this month, he agreed to merge the Australian unit with Hutchison Telecommunication's operation where growth prospects are slim.

On Feb 3, Colao said Vodafone was making progress on its plan to reduce costs by 1 billion pounds by March 2011. The measures will have "some impact on headcount," he said at the time, declining to say how many jobs may be affected.