10/10/2008 5:50:00 PM
T-Mobile to cut 100 jobs as part of streamlining operation
T-Mobile will initiate its second cost-cutting initiative in the UK in two months by outsourcing a big chunk of its finance team, Mobile can reveal.
Around a third of the 300-man finance department are likely to be made redundant pending further discussions.
The 100 full-time finance roles to be cut were described as ‘transactional’ and ‘process-oriented’, and will be outsourced to an unknown third party.
A spokesman confirmed that proposals for job cuts were being discussed, but said it wasn’t clear at this stage whether the jobs would be moved to a UK third party or one overseas.
Those potentially affected by the job cuts were briefed by management in recent weeks. The consultation process began from 15 September and has continued since then.
It follows the official opening of a 200-seat T-Mobile call centre in Philippines last week. It was first announced in September this year that the operation would largely handle prepay. T-Mobile has not declared, as yet, how the new call Filipino centre will affect costs in the UK.
Under the terms of that deal, T-Mobile will be part of a joint venture with Indian operator WNS and Filipino operator ACS, which will be called ‘T-Mobile Araneta’.
A spokesman said: ‘T-Mobile UK is considering ways to improve the efficiency of its finance operations. The UK mobile market is the most competitive in Europe and this is just one more initiative that T-Mobile is undertaking to become more efficient.’
T-Mobile is expected to reveal further cost-saving schemes in the coming weeks, but will not be involved in job cuts. A source close to the matter said: ‘It involves systems and processes in both our direct and indirect channel.’
Sources also suggested more out-sourcing of customer services was in the pipeline.
T-Mobile’s UK finances have been under continued scrutiny from its channel partners who have been frustrated by its inconsistent activity in the market.
The spokesman said the saving drive was being initiated by the UK business rather than the parent company, Deutsche Telekom.