Virgin Media plans bonuses while cutting jobs

Virgin Media is pressing ahead with plans to award its managers bonuses despite announcing last year that it would cut about 15% of its workforce.

The cable operator has approved plans to pay bonuses worth up to 100% of base salary to 7,000 eligible staff if they meet certain criteria. Last November the firm said it needed to 2,200 UK jobs by 2012 to cut costs.

The group announced its bonus intentions in a US stock exchange filing, which it is required to do every year.

A Virgin Media spokesman insisted that bonuses were essential this year and together with the firm’s restructuring plans formed a key part of aims to “radically transform the business”.

He added: “We will make sure we have in place a competitive, performance-related compensation package that rewards our staff for success and fully reflects the extent of our ambitions.”


 

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