Vodafone Australia is planing to cut its workforce to cope with a shrinking market share. Up to 500 jobs may be affected.
Vodafone says it is prioritising its investment towards a more reliable data network and upgraded IT systems. It says the changes are directed at eliminating "non-essential costs".
Vodafone Hutchison Australia lost 178,000 customers during the first half of 2012 and now has 6.8 million customers.
Analyst Paul Budde estimates Vodafone has experienced a double digit slide in revenues this year, while Telstra and Optus have grown slightly.
The company has 5000 employees.