Jobs axe falls at Colt
800 heads roll
Colt Telecom has confirmed massive job cuts amid the continuing slump in the telecoms industry.
Over the next year some 800 people will find themselves out on the street as Colt makes savings of £40m.
Although the job cuts are a massive blow for those who work at the company, it's not as bad as first thought. Insiders had claimed that as many as 1,000 jobs were facing the chop as Colt tries to gets to grips with its finances.
In a statement today Colt wittered on about moving to a "pan-European organisational structure" which will lead to "improved pan-European sales and operating efficiencies".
Colt said that it expects EBITDA (earnings before interest, etc) for the quarter ending 30 September to improve to around £17m, compared with £14.7m for the previous quarter. Turnover for Q2 is expected to remain flat at around £258.3m.
Said the company in a statement: "Given the recent downturn in the telecommunications industry and in the overall economic environment that it is prudent to take further action to ensure that its asset base remains aligned with the realities of the market." ®