Vodafone set to cut 500 jobs in Germany

Vodafone set to cut 500 jobs in Germany

UK operator Vodafone is set to cut 500 jobs from its German unit as part of a workforce restructuring plan.

The company confirmed in a statement it has begun a two-year plan intended to make its German business “fit for the future”.

Competition from Deutsche Telekom’s T-Mobile and harsh market conditions are said to be reasons behind restructuring.

Vodafone is expected to outsource jobs to India and Romania in an effort to cut costs - despite admitting it may affect the operator’s network performance in the short term.

Starting salaries are also being reduced to drive down costs for the operator.

"We are paying starting salaries that are significantly above the market rate," said CEO Jen Schulte-Bockum in an email.

The CEO also said Vodafone would create special new service units for customer support.