Orange, T-Mobile merger could cost 2,000 jobs

Dylan Bushell-Embling | March 03, 2010

telecomseurope.net

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The merger between Orange and T-Mobile in the UK could put up to 2,000 jobs at risk, analysts state.

While neither company have commented on how many jobs might be cut, analysts told the Times Online that the companies will be seeking to cut a combined £3.5 billion (€3.86 billion) in costs during the merger.

The worst effects of the cuts will be felt in the back-office, the analysts said, with retail staff to remain relatively unscathed due to the decision to keep both brands for at least 18 months.

Orange, however, has already suggested that some stores will be merged in areas where there are Orange and T-Mobile stores close by.

Consumer groups have already decried the potential impact of the merger on telecom pricing.

Consumer Focus deputy CEO told the Daily Mail he had “serious reservations” about the deal, and the fact that it was approved by European rather than UK regulators.

Another consumer group, Which?, suggested that the deal was approved too quickly.

The merger will create the UK's largest mobile operator, with a market share of 37% and around 30 million customers.

Source:

telecomseurope.net

Dylan Bushell-Embling

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