Cable and Wireless on the ropes?

Tough hosting market to blame as C&W's chief moves to cut jobs

There is mounting speculation that telco Cable and Wireless will have to make cuts following the imminent conclusion of a review into its operations. The stuttering telecoms market has meant C&W Global, which includes the former assets of web hosting giants Digital Island and Exodus Communications, is failing to grow as fast as once expected. The company - known as much now for its web hosting and IP unit as its regional operator businesses - is being kept going by profitable local operations in the Caribbean and Central America and a healthy bank balance from asset sales at the height of the bubble. Today's FT cites sources close to CEO Graham Wallace saying the top executive is aware of the mounting pressure to cut costs further - if possible - by making more lay-offs or disposing of assets, potentially in the US. Others have questioned C&W's promise of a profitable Global operation by next spring, given an ongoing capacity glut and the emergence of some alternative carriers and hosting firms from Chapter 11 protection.


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