Cable & Wireless plans to cut more jobs

Cable & Wireless has said it will continue to cut jobs for the next couple of years as it restructures Britain's second-largest fixed-line telecoms company.

The news came as the company on Thursday reported a 13pc fall in full-year pre-tax profits due to restructuring costs.

John Pluthero, executive chairman of C&W Worldwide, said job cuts will be an "on going feature" as the company reshapes its operations. C&W has cut about 600 jobs from the integration of rival Thus and 1,000 of 1,500 planned job cuts as part of its "One Caribbean" programme to consolidate 13 businesses into one.

Mr Pluthero said headcount at the UK business has been reduced by about 2,000 to 2,500 over the last few years. He said the job cuts were part of the "transformation" of the business rather than a reaction to the economic downturn.

Tony Rice, who runs C&W International, said customer service "tends to improve" when jobs are cut as the company gets closer to its customers.

C&W said the job cuts would result in large charges against profits for the next few years, but would help the group would achieve big savings.

News of further job cuts is likely to anger unions which have attacked a £8.3m bonus to be paid to Mr Pluthero. About 60 top C&W managers will share £32m in the first payout from under the company's highly controversial private-equity style incentive scheme.

Andy Kerr, deputy general secretary of the Communication Workers Union, said: "John Pluthero is completely out of touch with both the business world and his staff. He should pay this bonus back and give Cable and Wireless workers a decent pay rise. This scandalous bonus culture for senior managers is disgraceful."

Cable & Wireless confirmed that it would delay its "value realisation" plan to return cash to shareholders until credit markets stabilised. Options under consideration include splitting the business in two with the view to selling one part.

The group recorded pre-tax profits of £233m in the year to March 31 compared to £267m a year earlier. Revenue increased to £3.6bn from £3.2bn.

C&W will pay a final dividend of 5.67p per share on August 7. This takes the full-year payment to 8.5p, a 13pc increase on last year.

The Telegraph, 21st May 2009

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