Vodafone plans to cut costs

MOBILE phone giant Vodafone expects its full-year profits to be impacted by higher energy costs and inflation – as it plans to cut costs by one billion euros (£880 million).

The company said it will streamline and simplify its group-wide structure and accelerate the digitalisation of its operations.

Its chief executive said the network will also take “pricing action” across Europe to mitigate against high energy bills and rising inflation

– meaning prices could go up for customers.

Vodafone has already implemented price changes in 12 out of 13 European markets, including raising contract prices.

It comes as the Berkshire-based mobile network said its adjusted earnings dipped by 2.6% in the first half of its financial year, driven by commercial underperformance in its largest market, Germany, and a oneoff legal settlement in Italy.