Vodafone Germany cuts 500 jobs, outsources to India, Romania

Summary:The German division will finish its outsourcing exercise by 2015, and affected jobs will be in the network technology, IT and customer service units.

Vodafone Germany will eliminate 500 jobs by 2015 and re-asisgn the position to India and Romania, where it can hire cheaper labor.
 
German-language newspapers RP Online and Frankfurter Allgemeine both reported the plans to cut jobs Tuesday, after obtaining copies of an internal letter written by Vodafone Germany CEO Jens Schulte-Bockum.
 
In the letter, Schulte-Bockum said the company could not afford high salaries in such a tough operating environment.
 
"We are currently paying starting salaries that are significantly above the market rate," Schulte-Bockum said in his letter. He added the affected jobs will be in the network technology, IT and customer service business units.
 
A Vodafone spokesperson confirmed to Reuters Monday the outsourcing would be completed by 2015.
 
However, Bloomberg reported Tuesday the number of jobs was not disclosed in the letter. "Commercial pressure is increasing", and regulation of the industry "has been hostile to investment for years", it quoted Schulte-Bockum's letter. 
 
The German office's decision to move jobs to India and Romania is the opposite of its Australian counterparts . In March, Vodafone Australia CEO Bill Morrow said it plans to hire 750 people in its Tasmanian call center and shift away from using its Indian one, and this is the first step in rebuilding the company's brand.
 
The company will continue to maintain the Indian operation, but it will be "more of back office-type activity", Morrow added.

Topics: Outsourcing, EU, India

About

Mahesh Sharma earned his pen licence in his homeland, where he covered the technology industry for ZDNet, SMH, Sky Business News, and The Australian--first as an FTE, and later as a freelancer. The latter fueled his passion for startups and empowered a unique perspective on entrepreneurs' passion to solve problems using technology. Armed... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.