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Pastimes : The Hot Button Questions:- Money, Banks, & the Economy

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To: John Madarasz who wrote (152)	11/13/2002 7:53:03 AM
From: maceng2	Read Replies (1) of 1417

Cable & Wireless cuts 3,500 jobs [This one been on the cards for a while. Thanks for the graphs. The situation is clearly shown.. thanks...pb] news.bbc.co.uk Graham Wallace must show he can improve things Telecoms company Cable & Wireless has said it is to cut 3,500 jobs in its global division. These are tough measures in a tough market Graham Wallace, chief executive A spokesman said the majority of the jobs would go outside the UK, reducing staff numbers to about 9,000. The company also announced heavy losses. The news sent shares diving more than 33% to 87.25 pence on Wednesday morning, mainly because of concerns about the cost of the redundancy programme. Withdrawing from US The decision to restructure and cut jobs was made after the company carried out a review of its global business which provides website hosting and telecoms services for companies. The £800m cash restructuring charge has hit the market harder than expected Mark Davis, Lehman Brothers It is now planning to withdraw from much of the domestic business market in the US and on the European continent but will continue to operate for multinational companies. The group will close 23 of its 42 data centres around the world. C&W Global's business in the UK will also be reshaped to reduce costs. The company said that the measures should save about £400m ($635m) a year. But the cost of restructuring will amount to approximately £800m. Staying put Chief executive Graham Wallace said: "These are tough measures in a tough market." In a conference call with reporters he was asked if he had considered quitting. "I have not thought about resigning, I have got a job to do here and I intend to do it," he said. But investors reacted to the company's plans by selling off its shares. "The fact is that the £800m cash restructuring charge has hit the market harder than expected," said Lehman Brothers analyst Mark Davis. "There is also maybe a degree of disappointment that nothing is happening with management. "Perhaps not withdrawing more completely from parts of the US business is a further cause for disappointment," he said. The group made a loss of £107m in the six months to September. But if exceptional costs are included, the loss amounts to £4.4bn.

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