O2 confirms 100 redundancies

14 Mar 2007

Mobile operator O2 Ireland has confirmed that it is to lay off approximately 100 workers following an internal review of its operations.

A spokesman for the company said the decision to reduce its 1,800-strong workforce by 100 was considered an appropriate restructure for the company in order to respond to changes in the mobile market and increased competition.

He said that the decision was based on a combination of cost management and ensuring O2 has the right skill set going forward.

It is understood that O2’s workforce have been informed of the plans and a 30-day consultation with employees will begin shortly.

O2 in recent weeks said that its average revenues per user (ARPU) during the fourth quarter levelled out against the backdrop of an extremely competitive market. Despite this, in the fourth quarter the company added 29,000 new subscribers to reach 1.63 million subscribers.

In recent weeks O2’s main competitor in the Irish mobile market, Vodafone, also revealed that it was seeking 100 voluntary redundancies following a strategic review.

By John Kennedy