Job cuts loom for Legend
ISP reports 'downturn in trading'
Staff at Lancaster-based ISP Legend Communications have to decide by today whether to accept voluntary redundancy.
Letters were sent to all workers last week offering them the chance to bail out of the company. But the letter warned that if enough people did not accept the voluntary offer then the ISP would be forced to make compulsory job cuts.
At this stage it's not known how many people face the chop. In an email to staff the company said "no decisions regarding our level of overheads have been made, as this is a process that will require considerable strategic thinking."
It went on: "The most important thing to note is that any recommendations made relating to the structure of the company moving forward will be with a view to help it be a more competitive and enjoyable place to work as well as one that is successful in the long term."
A week ago Legend - which until recently was known as Business Serve - issued a trading statement to the London Stock Exchange warning that its broadband business was being squeezed and that it had been hit by "two bad debts" amounting to some £200,000.
Said the company: "Although trading at the beginning of the financial year was in line with management expectations the last few weeks have proved to be particularly challenging. The downturn in trading is attributable to continuing margin pressure on the ADSL business line and an unexpected decrease in customer renewal rates.
"Over the last few weeks it has become apparent to the board that this trading trend could well continue.
"Whilst the board is confident that the business will be profitable in the current year it is undertaking a review of the company's full year figures, including a review of the level of the company's overhead."
No one from Legend was available for comment at the time of writing. ®