1,500 jobs cut at Cable & Wireless
Friday 03 April 1998
All CWC's employees were briefed on the cutbacks in meetings up and down the country yesterday. But details of exactly where the axe will fall will not emerge until the company reports its annual results in May.
The rationalisation programme is the result of an "optimum resourcing review" ordered by Graham Wallace, CWC's chief executive. He said the review, carried out by Coopers & Lybrand, had identified "significant operational efficiencies which will result in reduced unit costs". But the company declined to spell out how much the redundancy programme would cost or the level of savings it would yield.
CWC was formed last year from the four-way merger of Mercury, Nynex CableComms, Bell Cablemedia and Videotron. Since then it has cut 400 management jobs, condensed 10 call centres into three, merged its five network control centres on to two sites and imposed a recruitment freeze. But the Coopers review identified further substantial costs savings.
"Clearly there are areas where there is fat; we simply don't need to same number of people to perform all the functions," said a spokesman.
As part of the restructuring, increased resources will be put into growth areas of the business such as data communications and the business market generally. At present, data communications make up about 10 per cent of telecoms traffic but CWC believes this could grow to 50 per cent within five years.
Administration, finance, personnel and other support functions will bear the brunt of the cuts. The 1,500 redundancies represents a net figure. Since CWC is hiring 700 staff for a call centre in Glasgow, the level of job losses from the existing workforce will be more than 2,000. Mr Wallace said the review would also lead to improved service and confirmed CWC was sticking with plans to invest pounds 1bn this year.
Since Mr Wallace's arrival CWC has embarked on a pounds 400m upgrade of its long-distance fibre network. The investment is additional to the money being spent each year to build out the cable network.
It has also unveiled plans for entering the digital market through a programming link-up with BSkyB and a software deal with Netscape and Oracle to give customers high-speed access to the Internet.
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Vladimir Putin says Russia will fight for the right of Palestinians to their own state
- 5 Germanwings plane crash: I have depression. That doesn't make me a psychopath
East 17 bandmember Brian Harvey in 'very desperate situation’
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Germanwings plane crash: Investigators may have already found remains of suspected killer co-pilot Andreas Lubitz
Children take eight Isis captives to be beheaded in latest propaganda video
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
£20000 - £35000 per annum: Recruitment Genius: This multi-award winning foreig...
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...