Vodafone to Report Major Loss; Layoffs to Follow?

Telecom News Editorials Reports Glossary

12:20 am on May 29, 2006 | Category: Business, Telecom Services, Wireless, Corporate

The world’s largest mobile phone carrier, Vodafone Group, is expected to announced record losses in the coming week, and could announce significant layoffs for its UK workforce, unconfirmed reports claim.

Although the wireless giant is expected to report improving operating profit, major asset write-downs will result in net losses of up to £20 billion. If this prediction checks out, it will be the largest loss ever reported in British corporate history, and probably result in the outsourcing of jobs to foreign IT and network partners. Up to 500 workers could be laid off from Vodafone’s Newbury headquarters.

Despite the huge asset write-down losses, Vodafone is reportedly hoping to mix some good news with the financial report this week. CEO, Arun Sarin, will try to keep investors happy by announcing new plans to boost growth and counteract slowing wireless voice revenues.

The plans will likely include increasingly targeting fixed-line customers by offering discounts to customers calling from within two miles of their homes.