Mobile phone group O2 will recruit 2,000 staff and open a fourth call centre as part of plans to boost customer service.
The recruitment drive over the next two years will come at the expense of other parts of the business after O2 said it planned to reduce its number of management and administration posts by 500 people.
The mobile phone company said the moves would enable it to focus on efforts to keep existing customers.
O2 already has three call centres in the North of England and said it would open a fourth, employing 800 people, in the 2006/07 financial year.
Around 700 more call-centre staff will be recruited in the coming year and another 500 staff will be hired for 40 new high street stores.
A spokesman for the firm said that O2 had been looking at potential sites across England for the new centre but the location had not yet been agreed.
However, he did confirm that the potential job losses were unlikely to effect the West Midlands.
He said: "The 500 jobs that will go will be spread across the UK but, in terms of the West Midlands, job losses will not be a big issue."