Vodafone moves HQ to London after 20 years in the country

Vodafone is moving its global headquarters to London, almost 20 years after the group started life in the provincial market town of Newbury in Berkshire.

Vittorio Colao, chief executive of the world's largest mobile phone operator by revenue, will move in October from the company's Newbury campus to an office in Paddington. Other members of the senior management team are also moving.

The changes are not part of Vodafone's efforts to cut costs in the recession. Vodafone, explaining the reasons for the move, said management would be closer to the company's business partners and shareholders.

Italian-born Mr Colao is Vodafone's fourth chief executive, and he will be the first to be based in London rather than Newbury. Mr Colao, whose home is in London, already works in the capital regularly. He uses the company's office in Park Lane, together with Sir John Bond, Vodafone chairman.

Michel Combes, the French-born head of Vodafone's European businesses, also already divides his time between London and Newbury.

Vodafone identified Newbury as a suitable place for its HQ when it was spun out of Racal Electronics in 1991. The HQ was less than glamorous, given its location next to a curry house, and Vodafone used to occupy more than 60 buildings scattered across the town.

In 2003, Vodafone opened a purpose-built HQ on the outskirts of Newbury. Arun Sarin, Mr Colao's predecessor, compared the campus with buildings in Silicon Valley.

Vodafone opened its Paddington office in December in a large complex close to the railway station, and it was initially occupied by staff responsible for marketing and the development of mobile internet services.

In total, about 200 of Vodafone's Newbury staff are moving to Paddington.

Vodafone stressed last night that 900 staff responsible for functions ranging from human resources to technology would remain in Newbury. Another 2,400 staff in Vodafone's UK business will also stay.