Broadband delay sparks job cuts

Broadband provider Iomart says it is cutting 50 jobs because of the slow pace of local loop unbundling and the lack of broadband availability.

The company said in a statement that it had been hit by the fall in IT spending and "the slow adoption of broadband ADSL services in the UK".

Iomart recently dropped consumer services to focus on broadband access, web hosting and mail services for the business market.

Chief executive Angus MacSween said: "We need a slimmer, fitter organisation as we turn our focus to the business marketplace. Like every other management team we must ensure we are correctly sized for the prevailing business activity."

"Many of our target audience are themselves too busy downsizing to be doing 'business as usual'," he added.

Iomart lost £4.4m on revenues of £3.6m in 2000. Last year, it sold its madasafish internet service provider for £3m.