Lebara counts cost of expansion


Ethnic MVNO to cut jobs as sources claim the business has attempted to expand too quickly

Lebara Mobile has confirmed it will cut an unspecified number of staff across its global business – with redundancies in the UK team expected.

Lebara CEO Ratheesan Yoganathan (pictured) refused to discuss the number, but blamed “tough economic conditions” for the decision.

However, some have accused the business, which has operations in the UK, Australia, Holland, Denmark, Spain, France, Switzerland and Germany of being overly ambitious in its expansion plans.

These include more than doubling sta numbers from 500 in 2010 to more than 1,300 in 2011.

Credit Safe figures also show the company wage bill increased £20 million between December 2009 and December 2010 – representing a 219.6 per cent rise.

Sources say Lebara, which has been a major sponsor of a number of sporting events and festivals, is conducting a review across all its marketing spend and is unlikely to be the headline sponsor for the 2012 MOBO awards for the first time in three years.