Vodafone’s £1bn cut back after falling sales

As the credit crunch takes hold of businesses, Vodafone is just the latest to announce falling sales, as a result they are to cut costs by £1bn. This news comes after Vodafone dropped their sales forecast for the second time in just four months.

Vodafone said that the tough trading in Europe is a direct result of emerging markets such as India. The network carrier will have to reduce staff, but they have not given any indication as to how many jobs will be cut.

With this shock announcement, you have to wonder if they will cut down on sponsorship deals. One of their biggest sponsorship deals is with the Mercedes McLaren Formula 1 Team, in a deal worth several millions.

Source