3/3/2010 12:29:00 PM
Analysts: T-Mobile and Orange merger puts 4,000 jobs at risk
Nearly 4,000 jobs could be lost under the Orange/T-Mobile
merger, analysts predicted this week.
The merger, confirmed on Monday 1 March, will trigger a major
rationalisation of the combined business, aimed at cutting costs
Back office staff will be hit first with retail staff not feeling
the full force of rationalisation for at least another 18 months.
Orange chief Tom Alexander confirmed to Mobile that back office
staff will be the first affected. He said: 'Where there are
obvious synergies - for example, we only need one finance
department - then that [rationalisation] would be a lot closer
than the two retail chains, which have to support two different
brands of customers for some time.'
Alexander said the impact of the merger would not be felt
immediately in the retail sector as the two brands will continue
to run separately for 'at least 18 months'.
He added the merger will be phased 'in bite sized chunks', and
declined to specify how many jobs would be lost in the process.
Analysts predicted job cuts of around 20%. With a combined
workforce of around 19,000, this would equal 3,800 job losses.
One analyst said: 'Around 20% of job cuts across the board will
be needed to make it worthwhile - bearing in mind the cost of the
Both infrastructure divisions are also expected to be hit.
Analyst Eddie Murphy, MD at Priory Consulting, said: 'They will
have to reallocate and redesign the networks first to ensure the
new entity maintains coverage, but after that there is likely to
be some losses.'
Informa analyst Dario Talmesio said the cuts would run deep. He
added: With the number of duplications in terms of functions, I
would expect an end result in the order of 15% of the current