NEWS
Cable & Wireless is expected to announce major job cuts on Tuesday as the telco refocuses on large companies rather than smaller ones.
John Pluthero, C&W UK chairman, has already warned staff that 485 positions have been earmarked for the axe.
In a memo sent to C&W staff, Pluthero said: "That's just the start. As we reduce the number of customers we serve, fix some of our problems, strip out layers of management, we will need fewer people to run the business... If you are worried that it all sounds very hard, it's time for you to step off the bus. This is no longer a place for the timid."
Pluthero was damning about the state of the UK telecoms market in general, and gave C&W's own performance a slating.
He wrote: "Congratulations, we work for an underperforming business in a crappy industry and it's going to be hell for the next 12 months."
The telecoms market has suffered in recent years from debts and overcapacity created in the boom times of the late 1990s. C&W, which must compete in the UK with a dominant BT, has suffered from low prices. Its decision to buy Bulldog has also been questioned after the ISP suffered widespread problems getting new customers connected.
Earlier this month, C&W issued a profits warning and announced the departure of chief executive Francesco Caio.
C&W wouldn't reveal the full details of Tuesday's announcement but said that it would "outline our strategy going forward for the next couple of years".
The memo appeared in the Sunday Times, which reported that Pluthero is planning to change C&W's focus so it concentrates on large customers whose telecoms bills can run into tens of millions of pounds.
Pluthero wrote that he wants to see C&W "selling less stuff but making better profits out of it", comparing this to being Giorgio Armani rather than Top Shop.
C&W has been losing jobs since last August when it bought rival telco Energis, where Pluthero had been serving as chief executive.
Graeme Wearden writes for ZDNet UK
Comments
There are 5 comments. Join the discussion
1. Peter Savage
No wonder they've got problems if the quotes from the chief exec are best he can do at inspiring his workforce
2. Ed Francis
Armani: a sign of quality and good taste.
C&W: just called its entire industry crappy.
C&W the 'quality crap' company. Nice tagline! ;o)
3. Harry I
Clueless & Wastefull (C&W) has been loosing jobs and reputation for over 10 years. There was a time when it employed well over 8,000 people in the UK. Every two years or so, the company sacks some of its workforce only to start recruiting more staff after a few months! Who in their right mind, giving a choice, will want to work for C & W.
The strategy at Clueless & Wastefull seem to be ' We got it wrong again guys, let us go back to being Mercury'.
4. Darren West
Crappy Industry - reminds me of Gerald Ratner. And look what happened to him!
5. Charles Smith
Their delivery is less than their marketing. These arrogant C&W executives seem to think that telecoms managers do not have a long memory. Poor service is never forgotten.
The performance of Bulldog seems little better. Loads of marketing, but when I rang to ask about business quality broadband I was met by an answer phone at 10.00 am in a weekday.
Hey guys you no longer rule over a Britsh Empire monopoly service! There are other people out better at delivering a good service.