C&W announces 1,500 job losses

Struggling telecoms group Cable & Wireless announced 1,500 job losses today as it revealed plans to restructure its UK operations and pull out of the US in the battle to rekindle its fortunes.

The revamp, intended to reverse a two-year decline which has seen shares slump with a string of profit warnings, will see the company’s headcount cut over the next two years.

Reporting results for the year to March 31, Cable & Wireless (C&W) said it had suffered a “turbulent year”.

Operating losses before one-off costs were £207m (€287m) from a turnover of £4.2bn (€5.8bn).

Chief executive Francesco Caio said: “As of today, the group will have a simpler organisation structure that, by removing the global and regional divisions, will ensure lower overheads, clear accountabilities and more effective transfer of knowledge and skills.”

Cable & Wireless also said it was suspending the dividend payout to shareholders. The company has seen its finances ravaged by problems at its Internet and data services division Global.