The mobile phone operator announced today it would slash 10 per cent of its workforce to enable a leaner, more effective operating model.

Vodafone Australia CEO Bill Morrow said the job cuts are part of a series of initiatives designed to turn around the struggling telco.

“We’ve been reviewing the business in detail and we are excited about the opportunities yet realistic about the challenges,” Mr Morrow said.

“Vodafone will be a leaner, more effective business that is completely focused on what our customers want now and for the long term. We’ll give them the network and services they need and deserve.”

A spokesperson said that affected staff will be informed throughout the week and that all areas of the business, including head office, will be impacted by the job cuts.

She also confirmed that there would be no voluntary redundancies.

Vodafone lost 178,000 customers in the first half of its 2012 financial year, which reduced its total customer base to 6.8 million.

During the six months to June 30, the company also suffered a $131.3 million loss in Australia.

Mr Morrow cautioned that while there are signs of improvement in the company’s customer service, there is much more that needs to be done.

In addition to the job cuts Mr Morrow announced a rapid expansion of next-generation LTE infrastructure and commitment to delivering a substantial increase in network coverage.

“It is vital that we simplify the business to be efficient and to enable growth in the long term,” he said. “We need to prioritise every dollar and internal action to count toward an improved customer experience and these changes are designed to deliver just this.”