Bob Lawrence, chief executive of Jersey Telecom, the parent company of Wave Telecom, which has 34 staff in Guernsey. (Picture by David Ferguson, 00831726)
JOBS could go at Wave Telecom as its parent company cuts staff by more than a quarter.
A total of 115 jobs will be lost at Jersey Telecom, across both islands.
The group employs around 400 staff – 34 of whom work in the Guernsey office.
Wave Telecom managing director Tim Ringsdore said the firm was concerned for local jobs.
‘Although most of the anticipated job losses will be in Jersey, the group cannot rule out some reductions in Guernsey,’ he said.
The cuts are being made as part of a ‘business transformation programme’ to save the Jersey States-owned company £7m. over the next year.
Up to 80 staff will be made redundant across the business.
This is on top of 35 people who signed up for voluntary redundancy.
Any further posts will not be filled.
The company said it still had to cut costs, despite making savings of £2.6m. this year and pre-tax profits in 2008 of £11m.
Mr Ringsdore said the announced programme would result in the organisation addressing its structure and the way in which it worked.
‘Wave Telecom is a growth area for the JT Group,’ said Mr Ringsdore.
JT chief executive officer Bob Lawrence said the move was necessary to ensure the business was fit for the future.
‘We face a challenging future where the pressures from competition, regulation and ever-changing technology are resulting in us having to make substantial operational cost savings and fundamental changes to both our structure and the way in which we work.’
He said that meant making a number of tough decisions.
Tim Langlois, from the GMB union, which represents more than 300 of JT’s employees, said the situation had come about because of decisions made by politicians to introduce competition.
‘In an island this small it is madness. JT could have been regulated without competition, which would have had the same effect on prices.
‘JT is a Jersey States-owned company that is being destroyed by unrealistic targets imposed upon them by the regulator.’
Article posted on 13th November, 2009 - 11.30am
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