C&W set for further restructure
Networking giant posts profit warning and is set to lose chief executive at financial year end
Cable and Wireless (C&W) has confirmed the restructuring of its business, posted a profit warning and confirmed its chief executive will step down.
CRN exclusively revealed yesterday (CRN, 30 January) that C&W was turning its back on its two-tier channel model after it axed its three UK distributors, Westcon, Network Partners and Interface Advantage.
The telco has created two self-containing operations, UK and International, while Francesco Caio will step down as chief executive at the end of the financial year.
It also confirmed that its UK EBITDA (earnings before interest, taxes, depreciation and amortisation) will be no higher in 2006-07 than it was last year, due to "continuing margin erosion" and "the impact of actions associated with the integration and realignment of the UK business".
Caio said: "Over the last three years we have transformed Cable & Wireless from an unfocussed business into a group of telecom operators relevant in each of their markets. This has been achieved against a background of unprecedented change in the industry."
Richard Lapthorne, group chairman at C&W, said: "The creation of the two operating units is the result of a huge amount of effort by the team and, in particular Francesco, who has worked closely with me to get us to this point."