Vodafone expected to cut costs by over $1.3b next year

The new CEO of Vodafone, Vittorio Colao, is expected to show his mettle in the New Year by instigating a cost-cutting programme to fulfil his promise to save over €1 billion ($1.36 billion).

In particular, the most costly region of Vodafone's straggling empire, western Europe, will be the prime focus for reducing expense, with Italy, Spain and the UK first on the firing line (although Vodafone Ireland has just announced a headcount reduction of 150 people).

The axe is thought to be hovering over supply-chain departments and new equipment orders, while outsourcing is being considered for logistics, procurement, IT and technology operations.

Vodafone has already centralised its handset procurement offices by moving to a single office based in Luxembourg--a country with an advantageous tax regime.

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