Vodafone is planning to make its biggest round of job cuts in five years as the telecoms group seeks to rein in costs and revive its stuttering performance.

The company is looking to shed several hundred jobs, most of which are located at its London headquarters, according to two people briefed on the discussions.

The European telecoms sector has endured a bruising few years in which some of the leading groups, including BT and Vodafone in the UK, Telefónica in Spain and Orange in France, have seen their values slashed in half. The highly power-intensive and indebted businesses have also come under heightened pressure over the past year as energy prices and rising interest rates drove up costs.