The UK's biggest mobile operator plans to cut about 1,200 jobs as part of plans to consolidate the business formed from the merger of Orange with T-Mobile UK.
Everything Everywhere has announced that it will cut 7.5% of its UK workforce in the next three months as it starts to merge the back office divisions of Orange and T-Mobile UK.
The company said the cuts affect all departments, but the IT and legal divisions would be most affected.
These two divisions will be consolidated, but the company will retain all staff necessary to maintain the separate faces of the Orange and T-Mobile brands, according to the Financial Times.
The job cuts will help the company to achieve its savings targets of up to £3.5bn, to shore up its competitive position against rivals Telefónica's O2 UK and Vodafone.
Once the UK's market leader, O2 has been relegated to the number two spot after EU legislators approved the Orange/T-Mobile UK joint venture earlier this year.
The company needs to finance plans for its next-generation LTE mobile network in the face of revenue declines of 4.8% in the second quarter of 2010.