Vodafone has announced that it's axing around 500 jobs in the UK as part of its ongoing £1 billion cost-cutting program.

That means 5 per cent of its 10,000-strong UK workforce will lose their jobs, with 170 of the losses coming from the company's head office in Newbury.

According to the BBC, all of Vodafone's operations will be affected in some way, although it's not clear how or whether the cuts will affect the operator's mobile games and content team.

"Vodafone UK has today announced reductions to its operating costs in order for it to compete more effectively in the UK market," says an official statement.

"As customers look for best value in their mobile services, Vodafone intends to reduce its cost base whilst continuing to invest in new products and services to meet changing customer needs."