Vodafone is to cut 400 jobs after it unveiled record losses of £14.9bn – a move branded “appalling” by the company’s main union.
The job cuts come as the telecoms giant tries to reduce costs after it revalued its German business Mannesmann, which it bought in 2000 for £112bn.
Following the revaluation, accountants estimated that Mannesmann was worth £23.5bn less than originally thought.
The company insisted that it was in good health despite the massive loss – the biggest ever recorded for a UK firm.
The Communications Workers Union (CWU) said the announcement was a “sad day” for staff.
“The CWU is very disappointed to learn of the redundancies announced by Vodafone. The union is also concerned for the welfare of its members whose jobs are potentially being outsourced,” said Jeannie Drake, deputy general secretary.
“For the chief executive to say that the company has met or exceeded expectations, outperformed its competitors and rewarded shareholders with over £10bn last year, and then in the same breath announce significant job losses, is appalling,” Drake added.