Vodafone will axe 500 jobs as the telco attempts to revive its ailing Australian business.

During the last few years in Australia, Vodafone has haemorrhaged customers as the telco experienced ongoing network problems.

As part of its continuing plans to turn around its struggling Australian business, chief executive Bill Morrow announced on Monday that there would be a “significant reduction” in the number of office roles across the country.

It is understood that Vodafone plans to slash 500 of its 5000 jobs, which includes contractors, in Australia.

“Vodafone will be a leaner, more effective business that is completely focused on what our customers want now and for the long term,” he said in a statement on Monday.

A large proportion of the job cuts are expected to be in Sydney where Vodafone has its head office in Australia.

The affected staff will be notified by the end of the week and will finish working at Vodafone by the end of November.

A Vodafone spokeswoman said there will be no voluntary redundancies.

Communications Workers Union (CWU) president Len Cooper said he would be talking to members at Vodafone during the next few days.

However, he said only a small percentage of the Vodafone workforce were union members.

Vodafone Hutchison Australia (VHA), a joint venture between Hong Kong’s Hutchison Telecommunications (Australia) and British mobile phone giant Vodafone Group, operates the Vodafone and 3 brands in Australia.

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

The telco also suffered a $131.3 million loss in Australia over the same period.

Vodafone said its number of customer complaints had reduced by 50 per cent since it experienced a series of network breakdowns in January 2011.

However, according to the Telecommunications Industry Ombudsman Vodafone complaints increased 11.3 per cent during the 2011/12 financial year, compared to the previous corresponding period.

Mr Morrow said the company would eliminate all non-essential costs and refocus its investments in its wireless data network, he said.

“The network is beginning to improve, the customer benefits are starting to flow and we’re intensifying our network investment as we position for future growth,” Mr Morrow said.

But he did acknowledge that there was still much more that needed to be done.

“We know we are not there yet,” he said.

“Only hard work, further investment and an acute focus will deliver what is needed in this market.”

Vodafone has recently completed its first test calls on its 4G network and said it was committed to increasing its network coverage.