MMO2, the former mobile-arm of British Telecommunications is
cutting 1,900 jobs in the UK and Germany, while BT is preparing to
outsource its PC support and maintenance to Computacenter.
The job cuts, which will include sales and administrative staff,
will cost £110m and save about £70m a year, according to MMO2 chief
executive Peter Erskine. The company also plans to close 133 retail
outlets in the UK.
MMO2 said the move was needed to stem losses and support
developments in the mobile sector, which was moving from volume
sales towards the provision of increased service and support for
established users.
About 1,400 UK jobs will be lost, covering back office, retail,
technical and administrative staff.
MMO2 will take a £110m hit to cover the cost of the job losses and
restructuring, which is expected to save £70m a year.
The company is also looking to save on its £8bn capital expenditure
budget by signing network-sharing agreements with rivals.
Meanwhile British Telecom has admitted it is in advanced
negotiations to outsource its PC support and maintenance in a
five-year deal with Computacenter.
Once the deal is finalised, some 377 staff will transfer to
Computacenter at the end of March.