Vodafone to slash one in ten Swedish jobs

Mobile operator Vodafone is to sack one in ten employees in Sweden over the coming year to cut costs, according to NyTeknik. Stiff competition in the market is, apparently, the reason.

Vodafone is aiming save 250 million kronor a year over the next two years. The company announced yesterday that part of this will involve over 300 jobs going over the next two years.

This is the first time the company has been forced to axe jobs in Sweden.

“The Swedish mobile market is at saturation point right now,” Hans Kuropatwa, head of Vodafone Sweden told NyTeknik. “Prices have sharply declined and we need to act now in response to the market.”

Redundancies are also likely for other Nordic phone companies. Of the 11,000 currently employed by Telia Sonera Sweden “several thousand” jobs are expected to go over the next three years.

Telia’s managing director, Anders Igel, warned in February that Telia Sonera Sweden needs to save four to five billion kronor over the next three years.

Elsewhere, Norwegian company Telio’s planned assault on the Swedish telecommunications market is likely to make competition even tighter. The company is currently poaching 6,000 customers a month from Norwegian phone company Telenor with its broadband telephony service.

The company has 10,000 Danish customers already and is adding 1000 new customers every month. The company are yet to launch the service in Sweden but already have six staff in place according to Norwegian IT Net-zine digi.no.

Using the company’s service, Norwegians can ring any landline number in Europe or America for 159 Norwegian kroner a month.

Sources: NyTeknik, digi.no