MobilCom cuts jobs and halts 3G network construction
Germany's debt-laden MobilCom said it will cut around one-third of its staff and halt plans to build a 3G mobile communications network in a bid to stay afloat.
The company plans to cut 1,850 of its workforce and to freeze its 3G network construction plans but retain the licence.
By restructuring its core mobile resale business, MobilCom expects to save €130m (£82m) a year.
Last week the German state bank Kreditanstalt für Wiederaufbau gave MobilCom a €50m (£31.4) loan to save the company from bankruptcy. With the restructuring plans, the operator hopes to secure the rest of a bailout package totalling €400m (£251m).
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