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O2 Ireland said on Thursday that its existing retail operations, Cellular World, O'Hagan Communications, Eire Communications, Access Communications, will be brought under the one umbrella in a new retail subsidiary called O2 Retail, which will be headed up by Brendan O'Hagan, the founder of O'Hagan Communications.
The restructuring will mean the loss of 45 jobs in O2 Retail's offices in Dublin, Galway and Cork, with the headquarters of the four retailers closed and combined into a new headquarters to be based in Dublin. O2 Retail will have around 370 staff after its initial re-organisation.
O2 also said that a second phase of the restructuring would be announced in mid-June following a review of its more than 100 stores nationwide. With several stores located closely to each other it is likely that there will be stores closures and possible job losses.
However, a spokesperson for the company told ElectricNews.Net that the company may also open additional stores following the review, but was not prepared to speculate on whether there will be further cuts in employee numbers once the second phase of the review has been completed. O2 Ireland employs 250 in its retail stores.
According to O2, the merger of its retail operations will allow it remove duplication of stores, reduce overhead costs and introduce a more focussed sales approach. However, the O2 spokesperson said the firm could not comment on how much savings the move will actually bring out about because the company is in its closed period. O2's latest results will be released on 29 May.
"This restructuring programme will enable O2 Ireland to manage our retail business much more efficiently so that we maximise cost savings for the company, but, at the same time, offer the best retail experience possible for our customers," said O2 Ireland's chief executive, Danuta Gray, in a statement.
Gray added that all of the company's employees will be invited to apply for the new positions available in O2 Retail, and that career guidance and support will be offered to those who do not wish to move to Dublin or are unsuccessful in their application.
O2 was thought to have spent around EUR10 million in buying up the independent retailers in the late 1990s and early 2000s. Known then as East Digifone, it paid what was believed to be around EUR3 million for a controlling interest in Cellular World in 1998 and approximately EUR5 million for O'Hagan Communications a year later. Eire Communications was bought in 2000, while Access Communications was purchased in 2001.
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