mm02 is to cut 1,900 jobs in the UK and Germany in a major restructure. It will cost £110m this year to implement the plan which is expected to produce annual savings of £70m.

In the UK, the mobile network operator is to close 133 of its 320 outlets and will implement job cuts throughout the back office functions. The company says it will make 1,400 people redundant, leaving it with 6,100 staff, in the UK in the next financial year. In its announcement it refers to the 'permanent workforce' - the inference we draw is that there will also be significant scaling back of contractors and temporary staff.

In Germany, mmO2 will cut staff levels at subsidiary VIAG Interkom by 500, leaving it with 3,400 employees in the country. An unspecified number of shops will be closed, and management will be streamlined to "enhance customer responsiveness and optimise cost efficiencies".

In the current financial year, 250 staff have gone from BT Cellnet and 400 jobs have been axed at VIAG Interkom.

mm02 also operates in the Netherlands and Ireland, through Telfort Mobiel and Digifone brands. The company intends to rebrand all its networks under the 02 banner. ®