EasyNet to axe 90 jobs

EasyNet has blamed the "cautious operating environment in wholesale capacity" for its decision to shed 90 jobs – around ten per cent of its total workforce - from its wholesale division.

The cuts are part of a wider cost-cutting initiative at the broadband operator which it says will save it around £10 million a year.

Despite today’s announcement the company is upbeat about the rest of the year.

It claims that DSL is the "cornerstone" for its strategy; it added more than 9,000 new broadband connections last year.

This led to a threefold increase in monthly revenues from DSL – up from £3.3 million in January 2001 to £9.6 million a month by December 2001.

And as one of the few remaining companies still involved in local loop unbundling, EasyNet says it is "already attracting customers" and has so far unbundled more than 160 lines from nine exchanges.

"DSL is expected to be the engine of revenue growth for the business in the next few years," said Chairman and chief exec David Rowe.

"Progress in selling broadband Internet access to businesses has been very promising and we are starting to see the fruits of our ongoing investment in local loop infrastructure with the first London exchanges operational and business customers signing up in increasing numbers," he said.

Shares in EasyNet were up 7.5p (5.36 per cent) to 140p by mid morning. ®