Cable & Wireless
laid out plans to slash jobs in the U.K., scrap its U.S. operations and suspend its dividend payments for a year after posting a loss of 6.53 billion pounds for the fiscal year that ended in March.
The loss was 32% wider than last year's loss, largely due to 3.5 billion pounds of charges against operations formerly part of its Global Internet division. The figure was worse than most analysts had predicted. Revenue dropped 24%.
The company's global plan is estimated to have gobbled up 9 billion pounds while producing nothing but losses. Cable & Wireless now plans to operate a portfolio of stand-alone, national networks.
Cable & Wireless' U.S. operations employ 2,700 workers. The company's U.K restructuring is expected to lead to about 1,500 job losses over 18 to 24 months.
The core of the company will be its U.K. operations. Its other divisions will include a data business in Japan, a network in Panama, and some other small operators, mostly located in the former British colonies.
Shares of Cable & Wireless were up 21 cents, or 4.4%, to $4.95 during
New York Stock Exchange