mmO2 is to axe up to 200 jobs in a bid to give its businesses in the UK, Ireland and Germany more autonomy.

Staff were alerted earlier this week that jobs would go in the mobile company's product development division and among human resources, legal and some other central functions of the business.

Although O2 hoped that all the cuts will be voluntary, the company said it can't rule out the fact that some of the job cuts might be forced upon staff.

In an email to staff, chief executive Peter Erskine said the shake-up reflected the "increased maturity of the operating businesses and the need to get closer to the customer".

"Now is the time to devolve operational responsibility more fully to the country level and, at the same time, establish a smaller, stronger and more focused central support function," he said.

The jobs cuts are subject to usual consultations and are expected to be completed in the current financial year. ®