Job cut risk at EBS and Fone Logistics

Job cut risk at EBS and Fone Logistics
Fone Logistics and EBS staff are facing job cuts in the wake of 3’s decision to take its b2c telesales management in house last month.

Fone Logistics is in consultation with employees over proposed cuts to the business. Meanwhile, EBS is understood to have made around 10 core staff redundant.

The losses follow 3’s decision in August to drop 26 outbound telesales companies and take over the management of the remaining third-party call centres directly.

Fone Logistics CEO Ian Gillespie told Mobile: ‘We are looking at overheads because of the way 3 is taking dealers direct. It would be wrong if we didn’t take a responsible look at costs under the circumstances.’

Gillespie (pictured, right) said no decision on redundancies had yet been taken, and added: ‘We have no specific number or any individual in mind.

‘We are still talking to staff, who have been made aware of the situation because it has obviously had an effect on the business, and they are coming up with some good ideas on how costs can be cut.’

Gillespie said he hoped no more than a ‘handful of redundancies’ would occur at the company. Fone Logistics has 75 staff.

The move by 3 has left Fone Logistics wary of its commitment to the operator. Gillespie said: ‘3 wants us to grow our b2b but we want better assurances before we invest our resources.’

Fone Logistics acquired several call centres selling 3 after Advantage Cellular went into administration in March, investing heavily in its capacity to support call centres.

EBS staff have also been hit by 3’s new call centre policy. One source said: ‘EBS cut 10 staff almost immediately.’

EBS sales director Andrew Dawson (pictured, left) said: ‘It doesn’t take a rocket scientist to know that certain cost savings have to be borne by parts of the company.

‘We have made the necessary internal changes associated with running a fulfilment house for call centres that sell 3, now that the b2c business with 3 is extinct.’

Dawson would not comment on how many staff had been made redundant.
Written by Mobile Today
Mobile Today

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