Telecoms provider TalkTalk has announced a “major re-organisation” of its business operations with IT at its heart, which will result in hundreds of jobs being cut.
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According to the company’s third quarter results out today, the reshuffle will include the integration of all its technology and IT capabilities and eliminate functional duplication.
The exercise is expected to lead to the loss of around 580 jobs, while generating annual cost savings of approximately £25m. The majority of the jobs affected are in operations, but some IT jobs will also be hit.
The company added that the exercise was aimed at further enhancing the quality of customer service, as well as delivering “major operational efficiencies.”
TalkTalk lost 25,000 of its 4,224,000 broadband customers during the last three months of 2010.
Despite this, the firm reported a rise in broadband revenue rise by 7% year-on-year to £316m. Total revenue for the period reached £444m, a decrease from £446m on the same period in 2009.
Tiscali’s chief executive Dido Harding admitted former Tiscali customers have been faced with trouble over the migration to the company's core billing system, but added that the results met expectations. The firm has been criticised for the customer service problems caused by the billing issues.
“The integration programme has caused some customer disruption, but provides a strong platform for us to deliver a better experience for all our customers, and enables us to drive further operating efficiencies across the whole business,” Harding said.
"Our operating performance in the third quarter was in line with our expectations and we remain on track to deliver our full-year guidance."
The IT aspects of the integration with Tiscali and the separation from former parent Carephone Warehouse, as well as the rationalisation efforts have been led by David Cooper, who was hired from Hutchinson 3G in 2009 to look after the firm’s IT strategy and is now leaving the firm to join British Gas.