UK mobile telecoms group mmO2 has said it will cut 20% of its workforce, losing 1400 jobs in the UK and 500 in Germany. The company will close many of its retail stores, as part of a strategy aimed at bringing GBP70 million in cost savings.
The company also announced subscription figures for the three months to December 31. It added 453,000 new customers, compared with expectations of 500-600,000. ARPU (average revenue per user) fell compared with Q4 2000.
More positive news was a rise in revenues from data services, from 10.7% to 12.8%; mmO2 wants to make 30% of its sales from data services by 2004. However, the major driver behind the rise in revenues was a 22% increase in SMS messaging. As SMS growth slows, mmO2 may find it harder to drive data revenues up.