Cable & Wireless will downsize its workforce.

Telecoms giant Cable & Wireless announced yesterday (10 February) that it will axe 600 jobs in a cost-cutting measure.

The job losses are part of an exercise to save the firm £7 million and come as a result of its acquisition in October 2008 of rival telecommunications company Thus. The cuts will be made in UK Thus offices.

Despite the current economic climate, C&W still expect to meet predicted earnings of £780m for the full financial year at an exchange rate of $1.88 to the pound.

Richard Lapthorne, Chairman of Cable & Wireless, said: “Our two businesses are performing very much in line with our expectations. We remain alert to the economic environment but we continue to trade strongly […] we are confident that we are well positioned going into 2009/2010.”

The strengthening of the US dollar against the sterling has provided a boost for the business from its international operations.

Cable & Wireless is one of the world’s leading international communications companies, operating in Europe, Asia and the US. It employs approximately 14,000 staff globally and is second only to BT in the UK telecoms market.