Home Highway delays blamed for job losses

Home Highway delays blamed for job losses
Alex Mayhew-Smith Telecoms equipment maker Telspec has completed restructuring plans that have seen the loss of some 100 jobs. The most recent cuts came at its manufacturing site in Fife, where 65 people have been laid off following reduced production of terminals for BT’s Internet Home Highway service. The jobs went as part of cost cutting measures and also because BT is not installing the service as fast as expected, said Philip Thorpe, Telspec’s technical director. However, the firm, which has 380 UK employees, is recruiting engineers as its R&D arm continues to grow. “We are looking for 10 engineers at the moment,” he said. “The restructuring didn’t hit design engineering.” Thorpe was upbeat about the firm’s prospects, saying: “We are chasing new products and the introduction of existing products into new markets. We are now on a good footing for the future.” Other redundancies were made at the end of last year and included the closure of a sales office in Germany. The plans to make the company more cost efficient were put in place by returned CEO Frank Hackett-Jones after the firm saw pre-tax profit fall by nearly half in its interim results last summer under previous CEO Jonathan Paget. The firm ended the year with a ?300,000 loss, which was better than expected by analysts and caused the value of the company’s shares to rise. “If there is a change in strategy it is to ensure cost effectiveness in future,” said Thorpe. Restructuring also saw the appointment of new senior management including a group operations director and a financial director.


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