The mobile phone giant, Vodafone, will be posting about £12 billion profit for the year ending March, 2009. But it has decided to freeze pay rises for its 10,000 strong UK staff, stopped bonuses and asked sales representatives to curtail car travel. Vodafone is targeting savings of £1 billion from its costs.

Chief executive of Vodafone’s UK business, Guy Laurence, in his email last month had hinted at axing 500 jobs. The email was sent to all employees detailing freeze in pay and terming the decision as tough, but responsible one.

Laurence explained that had company decided to raise salaries, it would have been forced to cut number of jobs. He added that company was asking drivers to keep their cars for longer.
Vodafone is also changing bonus plans for next financial year; incorporating new profit shares based targets.

Employees feel totally shafted. Their morale is rock bottom. An insider accused that despite working like hell this year to register profit, company has stabbed them in the back. According to latest annual report for 2008, former chief executive Arun Sarin took home £2.13 million as bonus whiles his successor Vittorio Colao, pocketed £1.3 million. Chairman Sir John Bond received £560,000 and the entire non-executive directors took home £110,000 each.

According to a spokesman of Vodafone, there will be no pay rise for Vodafone UK staff as well as management for the coming year.