Vodafone to Cut 500 Jobs in U.K.

Updated from 5:41 a.m. EST

Vodafone(VOD Quote) said Tuesday it will eliminate up to 500 jobs, or about 5% of its work force in the United Kingdom, as part of a cost-cutting program.

Staff at Vodafone, the world's largest mobile-phone company, were informed of the cuts on Tuesday, the company said. The cutbacks include 170 positions at company headquarters in Newbury, England.

"The majority of savings will be achieved by taking operating costs out of the business, however, there will also be a reduction of approximately 500 jobs across the business," the telecommunications company said.

In its half-year earnings report released in November, Vodafone said it was aiming to shave 1 billion pounds from global operating costs by March 2011 "to offset the pressures from cost inflation and the competitive environment and to enable investment in revenue growth opportunities."

In the three months ending Sept. 30 -- its second quarter -- Vodafone said operating profit in Britain had fallen by 109 million pounds to 134 million pounds. Service revenue was down 1.1%.

At the time, Vodafone said growth had slowed because of competitive pressure on voice and messaging tariffs.

During the third quarter, Vodafone said British revenue had fallen 0.7% from a year earlier.