There are concerns about the future of wireless broadband operator Tele2 following news that it has made "drastic" job cuts following restructuring at the company.

Sources claim that the sales force has been given the elbow with one insider describing the cuts as "drastic".

Tele2 has also decided not to install new customers onto its network but insists that existing customers would still be supported.

The broadband operator also dismissed speculation that the business had called in the administrators.

Elliot Mueller, the CEO of Tele2, told The Register: "That is not true."

However, he admitted that the company was facing a challenging time.

He said: "Due to the economic climate we have had to restructure our business…to lower our cost base. We have had to make job cuts."

He added that right now "we're concentrating on our existing customers" and said that there was "nothing for customers to worry about".

Last week Tele2 fleshed out details of a strategy change in which it decided to move away from supplying home users with wireless broadband and concentrate instead on business customers.

The move was an admission that it cannot compete with ADSL and cable players on price – especially for home users. ®

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