Vodafone starts cost-cutting action

Vodafone chief executive, Vittorio Colao, is set to put his plan to cut £1 billion off annual costs into action.

Colao is expected to implement the plans throughout 2009, which will include changes to the group’s technology and supply chain departments, as well as jobs being axed.

In addition, Vodafone and France Telecom-owned Orange are close to signing a cost-sharing deal that would divide the costs of technology, engineering and maintenance between the two companies.

Vodafone and Orange already share base station maintenance costs.

The new deal is likely to see the two telcos integrate their 3G networks, as well as collaborate on managing their international coverage.

The UK, Italy and Spain are the most expensive countries for Vodafone, so most of the company’s cost cutting measures are expected to be made in these areas.

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