C&W announces profit warning, restructuring plans

1 Feb 2006

UK-based Cable & Wireless has announced plans to oust its CEO as part of a wide ranging restructuring of its business that is predicted to be preparing the company for a break-up, according to the Financial Times. The announcement coincided with C&W’s second profit warning in less than three months, due to the revelation of previously undisclosed ‘non-recurring items’ of GBP70 million, which will account for close to half of UK earnings for the fiscal year ending March 2006. CEO Francesco Caio will leave C&W in April after the board decided to remove the position as it creates two self-contained units to run the UK and international operations separately. The restructuring will effectively remove all of the group’s corporate functions, putting up to 160 UK jobs under threat.

United Kingdom, Cable & Wireless (UK)