TalkTalk to cut 580 jobs as total revenue drops by £2m

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Broadband provider says loss due to churn in Tiscali base and is in line with its simplification process

Broadband provider TalkTalk will cut 580 jobs in order to reduce costs after it’s broadband customer base plummeted by 25,000 and total revenue fell by £2 million in Q3 2010.

The drop in broadband customers to 4.224 million reflected continuing churn in IP provider Tiscali’s customer base as TalkTalk continued to transfer customers from Tiscali, which it purchased in 2009 to its own billing system.

The company has been on a drive to simplify its operation by integrating all its technology and IT capabilities and eliminating functional duplication, which it says will eventually save it around £25 million.

Total broadband revenue however grew by 7.5 per cent year on year to £316 million reflecting the the addition of 69,000 net new customers during the year.

Revenue in TalkTalk’s B2B business re-branded as TalkTalk Business earlier this month was broadly flat year-on-year which reflected “normal seasonality” in the SME market, the comapny said.

TalkTalk’s non broadband customer base which comprises of legacy voice-only customers and narrowband subscribers declined by 83,000 in Q3 to 755,000, which was in line with expectations on the back the simplification process.

TalkTalk chief executive Dido Harding (pictured) said: “We have made a good start implementing the new strategy we announced in November last year, focusing on simplifying our business, improving our operating margins, and delivering value for money products and services for our existing customers.”

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