Vodafone seeks £1bn in cuts a year after issuing sales warning


Vodafone seeks £1bn in cuts a year after issuing sales warning

Antony Savvas

Vodafone has issued yet another sales warning for the year and is now looking to make £1bn in cuts a year until 2011.

There will now be fears the firm will embark on a redundancy programme like many other major technology firms in response to the recession.

After posting its half-year results, Vodafone now expects full-year revenues to be between £38.8bn and £39.7bn - down on its July forecast.

For the six months ended 30 September, sales were £19.9bn. Although this was a 17% increase, most of it came from foreign currency benefits and acquisitions.

Vodafone said organic sales growth was less than 1%, and that operating profits decreased to £4.1bn from the £5.2bn posted at the same point last year.

With the UK market again under-performing, and with the economic conditions getting worse, Vodafone workers here may be sitting uneasily.

Vodafone says "appropriate actions" have already been put in place to change the UK situation, although it did not specify what it intended to do.

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