Voda UK Buying 3UK, Cutting Costs/Jobs?


Rumors are swirling that Vodafone UK could be on a mission to acquire 3UK, a move that while I’m sure has many people excited, could come with its fair share of negative implications. Ahead of the purchase, other rumors are suggesting Vodafone is on the brink of axing 500 employees in a cost-cutting mission. They’re simultaneously looking to add 170 “customer facing roles” but that is still a net loss of 330 employees.

Vodafone Logo

That may not sound like a huge amount, but composing 3.6% of Vodafone’s UK employment, those 330 people shouldn’t be overlooked. The executive team would probably consider this “trimming the fat” but my concern is what happens when/if Vodafone buys 3? Three are usually redundant roles and overlapping positions, with more jobs inevitably being lost.

The Vodafone and 3UK deal is being suggested as a competitive measure since T-Mobile UK’s planned merger with Orange UK was given the green light by regulators. Will the consolidation continue?

[Via NetImperative]

Rob Jackson
I'm an Android and Tech lover, but first and foremost I consider myself a creative thinker and entrepreneurial spirit with a passion for ideas of all sizes. I'm a sports lover who cheers for the Orange (College), Ravens (NFL), (Orioles), and Yankees (long story). I live in Baltimore and wear it on my sleeve, with an Under Armour logo. I also love traveling... where do you want to go?

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  1. I use 3 for sending texts and receiving calls. I work from home though, so my Nexus One is always on wifi.

    It would be interesting, as 3 have a solid 3G network, though why you care about some people potentially losing their jobs, god alone knows.
    It’s just what happens when companies are acquired, it’s not a big deal at all.
    I’m sure some would say that they’re human beings so of course it matters and it especially matters to them, but if I lost my job I wouldn’t expect anyone outside my circle of friends to even remotely care.

  2. Would certainly make sense. Would be a force that could go head to head with T-Orange with 3’s innovative interesting approaches combined with Vodafones solid straight forward approach.
    I agree with the commenter above that the job losses are, whilst sad, unimportant. Companies have to do what they have to do and that can include letting people in redundant positions go.
    I look forward to finding out how much truth there is in this rumour and have long thought the UK phone market wouldn’t be able to sustain 5 different networks. If it gets us better deals and better coverage I welcome it.

  3. hope that if this happens voda isn’t kill 3’s skype over 3g

  4. Less competition as it would go from 5 major networks to 3.

    Not counting the small networks.

  5. I Hope We Get Free Windows Live Messenger And Skype If Vodafone Buys 3UK (3UK Has Free Skype And Windows Live Messenger For Everyone On 3)

  6. They already bought 3 here in Australia.

  7. I work for 3 UK, and this is the first that I have heard of it. That doesn’t mean it isn’t true, but very unlikely.
    According to Ofcom, we have the best 3g coverage so it could be seen as a good move for Voda. The fact that we ONLY use 3g means we’ve been working hard with our signal. If we lack coverage in a particualar area we piggy-back Orange UK’s 2g signal.
    With the Orange/T-Mobile merger going ahead, 3 UK will be allocated some of the Orn/T-Mob spectrum for more masts, so its a win-win for Voda. By one get some free.

    In my opinion, it makes sense for Vodafone. Will it happen?

    I doubt it.

  8. So much for customer choice in the UK then. I used to be with Vodafone UK but moved to 3 because they have the biggest 3g coverage and I also had some poor experiences with Vodafone.

    When takeovers like this happen it always means less choice for the consumer and eventually higher prices.

    3 has invested and inovated but now does it mean the end of skpe and some of the other cool stuff ? Probably.

  9. Three and Vodafone merged here in Australia too. They have remained separate so far. I’d image they’ll one day become Vodafon3 tho

  10. yeah in australia they said it was a ‘joint venture’ where voda and 3 were coming together rather than voda buying 3. i work for 3, so far theyve remained separate but theres been very subtle integration between the 2 so far.

    3 is now using voda’s 2G zone, and theyre also receiving more big name handsets which 3 probably wouldnt have acquired by itself.

    aparently the GO is that 3 will soon become voda because it is more well known internationally, as for now.. theyre known as Vodafone Hutchison Australia (VHA)

  11. oh… and skype over 3G has still remained with 3. ill doubt they’d let that deal go because we’r the only network in australia that uses it and it’s pretty big for them!

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