UPDATED: Black Tuesday for Vodafone?

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Mobile phone and broadband provider Vodafone is rumoured to be readying itself for job cuts in the UK tomorrow as it struggles to maintain buoyancy in tough economic times.

The financial news organisation Bloomberg quotes two sources close to the firm in its coverage of the issue. It said that these sources, who refused to be identified because of the confidentiality issues involved, explained that it would be the UK division of the firm that faces cuts, and that the numbers would run into the hundreds. Vodafone employs around 10,000 people in the UK at offices across the country.

The firm scaled back its financial predictions twice last year, and in November said that it was looking to cut losses of up to £1 billion by March 2011. Earlier this month Vodafone chief executive officer Vittorio Colao said that this activity would have, “some impact on headcount.” What other activities it has in mind are expected to be revealed tomorrow.

At Mobile World Congress last week, the firm announced that it would be carrying the the HTC Magic, the second Google phone. The first Android-based phone in its roster, the Magic will be released by Vodafone this spring.

A Vodafone spokesperson told IT PRO that the reports were unconfirmed and would not offer further comment on the rumours.

UPDATE: On Tuesday, Vodafone issued a statement confirming that 500 jobs were for the chop.

"Vodafone UK has today announced reductions to its operating costs in order for it to compete more effectively in the UK market," the company told the BBC.

"As customers look for best value in their mobile services, Vodafone intends to reduce its cost base whilst continuing to invest in new products and services to meet changing customer needs."

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