Vodafone Australia To Cut Around 500 Jobs

By Gavin Lower

MELBOURNE--Vodafone Group PLC's (VOD.LN) Australia unit is set to cut around 500 jobs as the telecommunications provider seeks to streamline its business and win back customers after network problems last year saw consumers turn to other providers.

A Vodafone spokesman told Dow Jones Newswires that local media reports that around 500 office jobs, about 10% of the company's workforce, would be cut as part of the structure were "fairly close to the mark."

The company, which is a joint venture between Vodafone Group Plc. (VOD.LN) and Hutchison Telecommunications Ltd. (HTA.AU), said in a statement it had embarked on a program to "optimize" the company by reducing office roles, eliminating non-essential costs, refocusing investment priorities and improving customer service.

"Vodafone will be a leaner, more effective business that is completely focused on what our customers want now and for the long term," Chief Executive Bill Morrow said in the statement.

Vodafone has suffered an exodus of customers since its network was hit by reliability issues. Around 780,000 customers have left Vodafone in the 18 months to June 30.

Many of those customers have gone to Australia's two largest telecommunications providers, Telstra Corp. (TLS.AU) and SingTel's (SGAPY) Optus.

Vodafone has spent 1 billion Australian dollars (US$1.04 billion) on upgrading its network and says on its website it plans to invest another A$700 million by the end of calendar 2012.

Write to Gavin Lower at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires