TalkTalk talks job cuts
Restructuring ahoy
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TalkTalk, the broadband provider spun off from CarphoneWarehouse, is cutting jobs.
The company held meetings with staff this morning as part of the consultation process. In total 580 jobs will go as part of a major restructure.
TalkTalk is the result of several mergers and takeovers, including Tiscali UK.
Chief Executive Dido Harding said five years of rapid growth and acquisitions had given TalkTalk 4.25 million broadband customers, but also left it with three separate and parallel businesses.
Harding said: "TalkTalk has effectively grown as three separate businesses serving the consumer and b2b markets, supported by a network division, each with its own IT, HR and finance function. This has created a level of duplication and it is now time to address that and build an organization fit for the future."
She said the broadband provider would now have one central services team and one IT department. It will also rebrand its business provider as TalkTalk Business instead of Opal.
An internal memo, seen by the Reg, gave more detail. It said that "Project Crystal" - research into staff views - found many people frustrated by decision-making hampered by "too much management intervention and insufficient clarity of roles".
The restructure will give TalkTalk two channels - household and business - supported by shared IT, HR and finance departments.
The memo said Paul Lawton will stay on as managing director of TalkTalk Business, formerly known as Opal.
Tristia Clarke stays on as Consumer Commercial Director. Chris Murton, Yves di Maria, Ian Cockburn, Jacquie Hamilton, Scott Marshall and CIO David Cooper are leaving the company in the next few months.
Clive Dorsman will head up a new, shared IT department. A Director of Technical Operations is still to be appointed.
The company was criticised last year by the Information Commissioner over its secret trial of stalking software which logged the web addresses its customers visited.
TalkTalk made a profit of £121m on sales of £887m in the last six months of last year. ®
COMMENTS
My two cents...
Whilst I appreciate that a business should look at streamlining to improve, I would suggest that redundancy is not the way forward. Given the track record for TalkTalk and quality of service issues, even by their own admission, is not very reputable and should be of their highest priority.
Reading up on the group you see that each of the component companies are profitable, which suggests that a little thought could mean a big change.
If I was heading up the company, I would be thinking outside of box a little and use the restructuring idea, not to line the pockets of the investor and shareholders (just yet) and instead to free up the workload of 580 people to be used around the business with the aim of improving customer service and building a repuation that you would expect of such a large company.
The only cost so far, is the implications of changing a load of job descriptions, boo hoo.
With 580 people, you have to assume that there would be some improvement in the quality of service, even if only small. Managed well, it could have huge potential and from that you stop losing your customers to BT (etc), gain new customers as the reputation improves and voila, make more money for your investors and shareholders, as a stronger and better company.
Have I missed something?
Oh, yes, you've not thrown 580 people out onto the street in a particularly difficult financial climate, some of whom are quite likey to struggle in the search for a new job.
It's not rocket science, really!
Well..
..that should help improve customer service.
Not.
TalkTalk got it completely wrong !
TALKTALK redundancy decision based on trying to improve customer service? ah ah ah...they got it completely wrong !
If you want your employees to take care of your customers look after your own staff first, care about them, help them grown, appraise them, be fair...And get rid of all those selfish directors and managers who are not doing any of that. If only people knew what it really happening at TalkTalk.
And just one advise to the TalkTalk employees just 'LinkedIn' and maybe other clever broadband companies who care about their staff will hire you because you are worth it and TalkTalk can see it. Best of luck to all the people who have been made redundant. Peace !
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