Telecom Lead Asia: Vodafone Group Plc. is planning to shift some jobs to India and Romania from Germany.
The job shift is part of Vodafone Germany’s decision to cut 500 jobs in Germany.
Bloomberg on Tuesday reported that the second-largest wireless carrier in the world will transfer parts of its main regional operation to Romania and information-technology operations to India.
Jens Schulte-Bockum, CEO of Vodafone’s German unit, in an internal letter, said: “Commercial pressure is increasing and regulation of the industry has been hostile to investment for years.”
Vodafone will also reduce entry-level salaries and establish a service unit for customer care, he said.
Vodafone in February reached an agreement to cut 620 jobs in Spain.
During Vodafone’s third quarter financial result, Vodafone said it would target cost reduction of £300 million for FY2013/14. It wants to manage commercial costs more profitably across operations.
Vodafone said it started active sharing agreement in the U.K. It is targeting 18500 sites by 2015. As part of cost controlling measures, Vodafone Ireland announced passive sharing agreement.
Vodafone Group also follows centralized procurement of software and licenses and the benefit will be £100 million over 3 years.
As part of Vodafone’s shared services program, the company has migrated around 7,400 employees. Out of this, more than 1,400 employees have been migrated since May 2012.
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