Monday, January 30, 2006

Cable and Wireless Announces Restructuring

Cable and Wireless announced a significant restructuring of its business, including the following points:

  • splitting the company into two self-contained operational units -- UK (including Bulldog) and International

  • the resignation of the Francesco Caio and the elimination of his position as Group Chief Executive.

  • a reduction of its corporate operations

  • John Pluthero has been appointed head of the UK operations, while Harris Jones will serve as managing director of International operations.

The company currently expects EBITDA for its UK operations to be no higher in its next fiscal year than at present. Cable & Wireless cited several reasons for its actions, including continuing margin erosion, high levels of churn and the acceleration of the switch from legacy services to IP.

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