EMCC European Monitoring Centre on Change



Geographic Location

Country: United Kingdom


Sector: Information / communication
61 - Telecommunications

Employment Effects

Announcement Date: 22-03-2005
Planned Job Reductions min: 500
Planned Job Reductions max: 500
Type of Restructuring: Business expansion
Foreseen End Date: 01-03-2008
Planned Job Creation: 2000
Other Job Reduction Measures: 500

Additional Information

The mobile phone company 02, which emerged from British Telecom in 2001, said it is to recruit 2,000 staff and open a fourth call centre as part of plans to boost customer service. O2 already has three call centres in the North of England and said it would open a fourth, employing 800 people, in the 2006/07 financial year. The rest of the additional staff will be recruited in the coming year. The plans emerged as O2 said it had performed well in the 2004/05 financial year, but revenue growth was slowing in a more competitive market. In the UK, net service revenues were expected to grow by between 12% and 15% in the year to March 2005, before slowing to mid-single digits in 2006. Even though the mobile phone operator 02 is undertaking a recruitment drive over the next two years this does not stop job losses in other parts of the business. O2 revealed that it planned to reduce its number of management and administration posts by up to 500 people.