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The cuts in the UK follow 8,200 job losses announced by the firm in October, which would have left NTL UK with around 15,000 employees. But the company's latest announcement will see it slash another 2,000 jobs leaving it with around 13,000 workers, NTL said in a statement on Monday. These job cuts will be both voluntary and compulsory, but NTL gave no indication as to when the cuts would be completed or in what areas of the business they would have the most impact.
The cable TV and broadband Internet company also said that it was now in the midst of reviewing all operating and capital expenses and had initiated a pay freeze for all managers. Additionally NTL will review and will consider removal of all non-essential consultants and contractors.
In Ireland, NTL employs just over 500, a number which has steadily risen throughout the year. A spokesperson for the Irish operation told ElectricNews.Net there was a possibility that there would be job cuts in the Republic saying, "For the moment we can't rule out anything." She went on to say that the Irish business was in the process of finalising its 2002 budget and would have a clearer image of its employment needs following its completion.
In a statement NTL Ireland said its key objectives for the upcoming year would be to widen the distribution of its new digital television service while improving the standard of its customer care. "In meeting these objectives we will be firmly focussed on growing our bottom line by increasing our revenues while tightly controlling our cost base," NTL said.
Although the group has been working to cut its massive debt loads, at the end of the third quarter, the company still owed STG14 billion to creditors. The cuts announced by the firm in October were designed to save STG275 million and Barclay Knapp, chief executive officer of NTL said that Monday's new job losses will help the firm to trim its expenses even more. "The initiatives being announced today are a continuation of our cost cutting programme. They are prudent in the current climate and will allow us to operate more efficiently," he said.
NTL has other plans to restore its balance sheet including the sale of its 3,000 mobile network broadcast towers in Europe, thought to be worth as much as STG1.5 billion. While many analysts say a deal is close at hand, projected buyers, France Telecom and German investment bank WestLB, have not yet agreed to NTL's terms for a deal. The company is also known to have cut its investment in its UK network in half from STG1.9 billion last year to a forecast of STG925 million for next year and STG900 million in 2003.
And while the group may be loss making overall, with revenues down by STG85 million in Q3, its Irish business enjoyed Q3 revenues of EUR16.95 million, slightly higher than the previous quarter. Q3 EBITDA (earnings before interest, taxes, depreciation and amortisation) for the Irish division stood at EUR3.36 million, a growth of over 53 percent from the previous quarter.
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