Cable & Wireless is to axe around 100 jobs at its London corporate headquarters as part of a company wide restructuring.
Staff at the central London office will be reduced from 737 people to just 140 over the next three months as the company's five newly established business units take greater control over their own business related functions.
Around 500 staff will transfer to the new business units, but around 100 jobs will go. Cable & Wireless said it could not say which departments the job cuts will effect, but said it would become clearer over the next month.
"We're evolving a number of staff and ending up with a much smaller corporate centre," said corporate spokesman Peter Eustace.
However, he denied that the move was solely a money saving exercise.
"It's not about cost cutting, it's about doing things right," said Eustace.
Cable & Wireless restructured its management team on 11 May to focus on its five core business units: global operations, Cable & Wireless Communications, Hongkong Telecom, Cable & Wireless Optus (Australia) and regional business.
Separately, Australian regulators have blocked the company's £610 million bid for the country's number three operator AAPT, saying the deal would "significantly reduce the vigour of competition" in the Australian telecoms market.
Cable & Wireless Optus said it accepted the decision and would withdraw its bid, but stressed that the deal was, "only a small part of our continuing strong growth."
Meanwhile in Japan, Cable & Wireless said today it is raising its bid for Japanese international carrier IDC by around £10 million and extending the offer by 10 days to 15 June. The raise betters a revised bid by Japan's NTT made yesterday and further intensifies the battle for control of IDC.
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