Cable&Wireless Worldwide (LSE: CW.L) CEO Jim Marsh decided to throw in the towel this week following the service provider's third profit warning in the past ten weeks, a problem it attributes to sluggish sales.
Since being spun out as a separate company from the former Cable&Wireless last year, C&W Worldwide has struggled over the past year, intimating recently that earnings would fall 5-10 percent below financial analyst expectations.
Taking Marsh's place is former C&W chairman John Pluthero, an executive that's been credited for revamping the original C&W.
"Clearly it has been a very difficult 12 months and it is now important that we take the necessary steps to ensure the future growth of our business," Pluthero said in a statement.
As its traditional data and voice service revenues continue to decline, C&W is hoping it can turn its fortunes around by expanding its cloud service portfolio. In March, C&W announced it invested £10 million ($16 million) in cloud services.
Pluthero said that he will boost C&W's cloud and data service capabilities "while becoming more competitive and efficient in the mature product areas" like traditional wireline voice.
- Wall Street Journal has this article (sub req.)
Cable & Wireless isn't selling its international assets
SingTel considers bid for Cable & Wireless Worldwide
Rumor mill: AT&T could move to acquire C&W Worldwide
Cable & Wireless to put demerger back on table