Cable & Wireless cuts staff after losses

1,500 UK jobs to go after £6bn loss revealed

Cable & Wireless (C&W) is to cut 1,500 jobs in the UK after revealing a loss of £6bn for the financial year ended 31 March.

Royston Hoggarth, the new chief executive of C&W UK, made a management call to resellers last week.

He emphasised the firm's potential in the UK following its decision to withdraw completely from the US. The UK business reported operating losses of £303m on turnover of £1.7bn.

Terry McKeever, C&W's indirect and partners sales director, said: "We have a new top team, experienced in building and transforming businesses, that will bring a sense of urgency, and discipline to the company."

Tom Fellowes, sales director at reseller Spitfire, said he felt C&W had been more focused recently. "A renewed focus on the UK business has to be good news for us," he said.

Manny Pinon, sales director at Norwood Adam, questioned why the firm was still losing money. "Everyone else has turned the corner, and C&W is still on the same course," he said.

"Look at the competitors that went into receivership instead of losing billions of pounds."

Separately, Ingram Micro issued guidance for its Q2 ending 29 June. The distributor said it expects turnover of $4.9bn to £5.1bn, compared with £5.8bn and $5.6bn in the previous two quarters.

The firm claimed its results will differ significantly from its guidance because of costs related to its profit enhancement scheme, introduced in September, designed to save $160m in operating income by 2004.