TalkTalk to shed more than 100 jobs to save £120m

TalkTalk is cutting more than 100 jobs in an attempt to save more than £120 million as part of a “radical” restructuring plan.

The debt-ridden telecoms provider, which warned of potential collapse earlier this year, is making the redundancies primarily at its Salford, UK, based head office.

In a bid to curb its expenses, with around 60% of the savings expected in the next year, TalkTalk has already shed jobs in its consumer divisions and is expected to cut more from its wholesale business, Platform X.

The company said it could not confirm the exact number of redundancies since it is still in the early stages of consultation, but it is expected it to be in the region of 130, across numerous departments and central functions.

A TalkTalk Consumer spokesperson said: “This is the first stage in a multi-year transformation of our business to deliver differentiated service and product to our customers.

“We are simplifying our business to ensure that we can continue to offer great value connectivity to our millions of customers across the UK. As part of this, we have made the difficult decision to launch a consultation about the future of some roles at TalkTalk’s consumer business.”

Under the cost-saving strategy, the company plans to look at office closures and reducing spending on travel, catering and marketing. It will also consider the potential sale of non-essential, smaller businesses.

TalkTalk, which had 1,857 staff members in mostly administrative positions at the end of February, had been grappling with mounting debts  after the company went into private ownership when it was taken off the stock exchange.

For the six months to the end of August, the company’s financial reports revealed that its losses soared to £72 million.

Meanwhile, in the same period its customer numbers have also showed a steady decline, decreasing from 3.6 million in February to 3.4 million.

Last year, TalkTalk Group divided its central operating business into three separate firms: TalkTalk Consumer, TalkTalk Business Direct and PXC Communications.

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