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Cable & Wireless announces £800m restructuring

Cable & Wireless is restructuring its global data services division to focus on its core enterprise and government customers, a...

Cable & Wireless is restructuring its global data services division to focus on its core enterprise and government customers, a move that will cost £800m and 3,500 jobs.

The company will cut its data centres from 42 to 23 worldwide, with most closures occurring in the US, Japan and continental Europe. Utilisation rates of the centres are running at about 30%, said C&W chief executive Graham Wallace.

C&W provides a wide range of telecom and hosting services to central government and blue-chip companies.

Most UK users will be unaffected by the restructuring, according to Duncan Black, director of corporate solutions strategy at the firm, who pledged that C&W remained a credible rival to BT.

Black said that C&W had withdrawn from the domestic business markets in the US and continental Europe but would continue to service its existing enterprise customers in those markets.

The company will pursue large corporate telecoms customers. "Some customers think that traditional outsourcing contracts can be too constraining," said Black. "We tend to pitch for customers that want to maintain ownership and control by using managed services."

The restructuring of C&W's global data services division will be phased over 12 months, with most redundancies concentrated in the US and mainland Europe.

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