NTL reveals where 4,000 jobs will go
NTL is today expected to axe thousands of jobs following its merger with cable rival Telewest.
Head-office jobs look set to be lost and call-centre jobs could be transferred overseas in a shake-up that affects around a quarter of the company’s 17,000 staff.
It is understood that details of the 4,000 job cuts will be released when NTL publishes its results for the first three months of the financial year today, although unions fear the number could be as high as 6,000.
Union leaders have attacked NTL over its plans and have said they will press for no compulsory redundancies.
Reports emerged over the weekend that NTL planned to close the Woking head office of Telewest and move some of the staff to its own base at Hook in Hampshire.
It is also thought that most of the combined group’s call centres will be outsourced, with some of the jobs going to India.
The Communication Workers Union said it was “surprised and dismayed” at the news.
CWU assistant secretary Brian Healy said: “We are disappointed and concerned that our members had to learn about potential job losses through the newspapers.
“We have raised concerns with the company and are seeking assurance that there will be no compulsory redundancies.”
Bectu official Sharon Elliott said it was “a monumental slap in the face for staff who have remained with the company through several turbulent and difficult years”.
She said: “Once again, British workers have first heard about job cuts through the media, and this from a company which insists that communication with its workforce is a priority.
“The company’s apparent decision to outsource its call-centre operations sends a strong message to staff and customers that quality customer service is dispensable.”
NTL has radically reshaped itself since emerging from bankruptcy protection in 2003, beginning with a major financial overhaul to generate new capital and reduce interest repayment charges.
It organised a rights issue to raise £824.3m (€1.2bn) and trimmed its workforce, with 1,500 call-centre staff losing their jobs in cuts announced two years ago.
The news will be a fresh blow to British industry after mobile phone giant Orange announced plans last week to axe up to 2,000 jobs under a review of its operational costs.
Rival telecoms firm Cable & Wireless warned in February that it may reduce its 5,500-strong UK workforce to between 2,500 and 3,500 over the next four to five years.
It is thought that the full integration of NTL and Telewest will take up to 18 months, so some of the losses will not be immediate. Voluntary redundancies and vacant positions not being filled will make up some of the cuts.
NTL merged with Telewest in March to create the largest provider of residential broadband services in the UK. It has indicated that savings will total £250m (€365.4m) over the next three years.
The tie-up with Telewest was followed by the acquisition of Virgin Mobile, making it the first operator with a “fourplay” offer of pay TV, internet access, fixed-line telephone and mobile calls.
