Vodafone has partnered with Ericsson to provide maintenance and operational support in order to make cost savings. The seven year partnership will mean the transferral of around 350 employees from Vodafone to Ericsson in May. Vodafone's chief technology officer Jeni Mundy said: ‘We see this as a strategic long-term relationship, offering real operational and financial benefits allowing us, over time, to reinvest savings in delivering new products and services for customers.'

Ericsson UK's, managing director, Mats Granryd said: ‘We believe Ericsson's experience in Managed Services and the skills and experience that the transferring staff bring will combine positively with our scale advantage to significantly benefit Vodafone with improved quality and superior cost structure.'

Vodafone's new UK CEO Guy Laurence said recently that the company would have stripped out cost a lot quicker if it anticipated the impact on the UK economy. Speaking on BBC Radio 4, Laurence said: ‘With the benefit of hindsight, we were more focussed on addressing growth at the front end rather than cost base. We always have a focus on cost, but it would have been more acute if we knew what was coming.'

Earlier this month Vodafone announced it would make 500 job cuts in the UK.

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