Vodafone, NSN slash costs and jobs

The global market crisis has hit hard at both Vodafone and NSN, with both companies announcing drastic cutbacks to stave off the effects of slumping revenues.

Vodafone has announced it intends to embark on a $1.5 billion cost-cutting exercise, although it has not yet specified where the cuts will come from. NSN, already struggling before the crisis hit, intends to trim its budget even further, and intends to slash around 1,800 jobs to help facilitate this.

NSN's latest cuts are part of a larger cost-cutting drive which the company has been pursuing since last year. When concluded, around 9,000 jobs will have been culled. The company hopes to generate $2.5 billion in savings by the end of 2009 as part of the drive.

NSN reported an operating loss of $1.5 million in Q3, despite earning around $5.4 billion.

Meanwhile Vodafone has been forced to lower its revenue forecast for the financial year by up to $1.4 billion.

Overall, the company's EBITDA increased 10% for the first half of the financial year to reach $11 billion, and sales grew 17% to reach $31 billion. But the company is facing increasingly difficult business conditions - particularly in Europe, where sales have continued to decline.

According to Reuters, Vodafone's stock price has declined by 39% this year, although the price rose 6.2% following the cost-cutting announcement, to reach $1.79.