Virgin Media to cut 15% of workforce
The national press headlines of 2,200 job losses at Virgin Media probably have given the impression that the axe is to fall within a very short time span, alas the worry of losing their job for staff is to be a lot more protracted. The 2,200 jobs losses are expected to be done in a number of phases with most going in the last quarter of 2009, or in 2010.
The cuts are meant to produce a saving of some £120m by 2012. At this time it is not exactly clear which parts of the group will suffer most, and one hopes that the cuts will not affect the standards of customer service or areas like fault repairs and installations.
As The Register points out Virgin Media has only just renegotiated repayment terms on billions of pounds of debt, the company has gained a breathing space until 2012. The money this releases along with savings may actually go towards the investment needed as the firm rolls out its DOCSIS 3 network which will be used for the 20 and 50Mbps products.
The 50Mbps product is of interest to more than Virgin Media, if the firm is able to launch something with no or minimal usage restrictions at around £47, then other broadband providers will be looking closely at the level of sales. If there is demand for a premium priced product that also delivers as promised then we may see other firms firming up their next generation broadband plans.