Totalise to axe jobs after week of woe

Internet service provider Totalise has ended a busy week with the announcement that it is to axe a "substantial" number of jobs.

The Leeds-based company, which kicked off more than a third of users of its unmetered service yesterday, said it has reduced its workforce to cut back spending.

In a statement the company said: "Totalise has confirmed that, following an operational review, it has reduced its workforce substantially, with the company now far more focused on its core businesses with proven income streams."

Yesterday Totalise kicked 900 users off its unmetered internet package. The company's chief executive, Peter Gregory, said because of the state of the ISP industry it was financially unviable to continue the service.

On Tuesday Totalise said it had temporarily withdrawn its free online text messaging service in light of the announcement that the four UK mobile operators are introducing reciprocal charges from next month.

Totalise, which is on the shortlist for three awards at the annual ISPA Internet Awards, could not confirm the number of job losses except to say it "was quite a few people". In October 2000, Totalise employed 110 staff.

The ISP last week notified its customers of an "extraordinary general meeting of the company" to be held on 13 February in Leeds to discuss the company's share situation. Customers who signed up to Totalise's internet services were given the equivalent of £400 worth of shares in the company.