Troubled Telewest to axe 1,500 staff
Cable operator Telewest is to merge its consumer and business divisions and axe 1,500 staff, it announced yesterday.
The company hopes the move will lead to savings of up to £50million in the next 12 months.
However, as the company has debts of £5.3billion further changes will also have to be made. There are increasing calls for a debt-for-equity swap, which would leave bondholders owning most of the company.
The company’s massive amount of debt meant that despite releasing good results for the first three months of the year, Telewest’s share price did not improve. On Friday morning Telewest shares were trading at 10 pence, compared to highs over £5 in 2000.
Core profits for the first three months of 2002 rose 34% to £91m, compared with £68m in the same period last year. Sales grew 4% to £334m, although this was due to revenue from domestic customers which was up by 11%. In contrast revenue from business customers was down by 6%.
See our previous stories:
03 May 2002: New Telewest service aims to speed up viewdata
18 Apr 2002: Viewdata to stay, say industry heavyweights
01 Mar 2002: Telewest reports better than expected results for 2001
28-Feb-2002: TravelMole Interview: Lawrence Hunt, Rapid Travel Solutions
25 Feb 2002: Rapid secures lastminute.com technology deal
29 Jan 2002: Telewest and X-TANT in MyTravel row
14 Jan 2002: Telewest ready to launch leisure GDS
04 Jun 2001: Viewdata’s days numbered as Telewest buys Rapid Travel Solutions
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