In the biggest annual loss announced by a European company, Vodafone has stated a loss of ??14.85 billion pre-tax compared to a profit of ??7.88 billion last year. This is despite revenues increasing by 10 per cent to ??29.35 billion. To cut costs, the company plans to outsource its IT functions and reduce 400 marketing, technology and back-office jobs in its head office. The company is under intense pressure from its shareholders as they plan to vote against the re-election of some directors despite being promised a ??9 billion return of cash. Meanwhile, even Vodafone KK, the former Japanese unit of Britain’s Vodafone Group and presently a Softbank group firm, saw its consolidated net profit in fiscal 2005 plunge 69.4 per cent from the previous year to $440 million owing to a fall in revenue.
