C&W announces improved results, postpones re-org, cutting 700 jobs

Cable & Wireless (C&W) raised its operating profit forecast on higher earnings. EBIDTA is now predicated to reach at least $1.2 billion in the 12 months through March 2009, with more revenues attributable to international sales.  The previous forecast was around $1.1 billion. 

C&W discussed a number of options earlier this year to raise its stock price and reorganize the company, but, like many other companies, C&W put its plans on hold and waited for calmer financial markets. Options included selling off other assets or a "de-merger" - which would likely split the company into two separate operating parts - an international arm and one that would service Europe, Asia and U.S. (EAUS).

The company will, however, cut 700 jobs from its British workforce as a result of its takeover of Thus; it currently has around 6,800 workers. The job cuts, coming over a three year period, will come "largely" from the former Thus workforce, in order to eliminate duplication and generate cost savings. Cuts come on top of 440 jobs cut since September 2007, including 360 from EAUS.

For more:
- UK Telegraph reports on C&W rightsizing. Article.

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