Analysts: T-Mobile and Orange merger puts 4,000 jobs at risk

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 by £3.5bn.

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 merger.'

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 combined employees.'
Written by Mobile Today
Mobile Today

Comments

Both good news and a shame. I think theres a few employees who've been part of the furniture too long at both networks, so it will do them goo ...
the combined total will be circa 18000 employees the benchmark for an operator in the UK is around 10000 for an efficient organisation. So job losses ...
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