O2 set to cut 100 jobs in IT restructure

O2 set to cut 100 jobs in IT restructure

O2 is conducting a wide-ranging restructuring programme that will result in around 100 job cuts in the IT and networks divisions.

It has been attributed by O2 as the main factor in a 5% drop on profits in 2007 from the previous year.

Profits were down to £380m in the last three months of the year compared to the same period the previous year, as the operator put the one-off charge into its 2007 financial results.

The restructuring has been priced at £15.6m after a review O2 conducted last year on how it can run its IT and networks business more efficiently.

New CEO Ronan Dunne told Mobile: ‘We have to make sure we have the right skill set and be more efficient. There will be something like 100 positions being made redundant, but we will work with those who want to be re-trained.’

O2 efficiency drive in IT and technology mirrors the cost-cutting, centralisation and out-sourcing drive being conducted at Vodafone at the moment.

Without the exceptional charge, profits would have been flat, according to Dunne. The company performed well in signing up new customers – 500,000 in the last quarter, and revenue in the quarter up to £1.4bn, an 8% increase.

Revenue for the year as a whole was up to £5.7bn – up 19%, with profits at £1.5bn.

Written by Mobile Today
Mobile Today

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