Vodafone Germany aims to save around 400 million euros ($434.48 million) over the next two years as part of a restructuring that will hit some 2,000 jobs, the company said on Tuesday.
The move is part of a cost-cutting drive announced nearly a year ago which will result in the loss of some 11,000 jobs worldwide.
"Personnel costs will be reduced through savings and the relocation of around 2,000 jobs - also because manual tasks will be performed by increased automation in future," it said.
A large part of the savings will come from switching off and updating outdated IT structures, said the company, a unit of British telecoms giant Vodafone.
However, investment in high-growth areas such as the cloud and corporate client business will be strengthened, it said.
The mobile phone group expanded across Europe in the first decade of the century, but has struggled in Spain and Italy and has agreed to sell its Italian operation to Swisscom.
Earlier this month, Vodafone said it would replace its boss in its largest market of Germany, Philippe Rogge, with Vodafone UK's Ahmed Essam in a new role of Executive Chairman Germany and Chief Executive European Markets.
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