MmO2 axes 200 from IT army

By PATRICK HOSKING
Updated:

 

MMO2, the freshly demerged mobile phones arm of BT, has lost no time in polishing its cost-cutting credentials by sacking its army of freelance IT specialists.

Around 200 IT contractors were told this week that their services were no longer required. 'Everyone's sitting around looking shellshocked,' one contractor said.

The contractors, many of whom were working on third generation mobile technology, accuse mmO2, which made its debut as a separately listed company on Monday, of disastrous short-termism. 'They're just trying to boost the share price in order to flush out the highest possible bid,' said one fired freelancer. Telefonica of Spain and NTT Docomo of Japan are among suggested bidders for mmO2.

MmO2 spokeswoman Carole Williams confirmed it was shedding 200 contractors by Christmas. But she denied that this was a short-sighted measure. Growth had slowed and so had the need for additional expertise, she said. The company has assured shareholders that tight control of costs will be a priority.

Most watched Money videos