 |
| Potential Job Losses Loom as TalkTalk Advances Demerger and Sale |
TalkTalk, the telecommunications company, is undergoing a significant restructuring in preparation for the sale of its business division, a move that is expected to result in the loss of approximately 50 jobs.
Employees have been informed that TalkTalk's headquarters in Salford Quays will be formally split into three distinct operations: TalkTalk Consumer, TalkTalk Business Direct, and the Wholesale business. The complete legal separation of these entities is slated to be finalized by March 1st, 2024.
The origins of TalkTalk date back to the merger of Carphone Warehouse Group, led by Sir Charles Dunstone, and Opal Telecom, founded by entrepreneur Neil McArthur. The company has maintained a strong presence in the North, initially at a site in Irlam near McArthur's residence and more recently at a technology campus at Soapworks in Salford Quays.
The urgency behind this demerger stems from TalkTalk's overall financial situation, with a £330 million revolving credit facility set to mature in November 2024 and an additional £685 million of debt maturing in February 2025. The recent rise in interest rates has limited Dunstone's financial options, particularly since he took TalkTalk private in a £1.1 billion deal with Toscafund in 2021, and this has resulted in increased borrowing costs for the company.
While these businesses are still based at the Soapworks location, it's understood that approximately 50 jobs are at risk of redundancy as a result of this restructuring.
Furthermore, it has been revealed that Tom O'Hagan will assume the role of Chief Executive for the Wholesale Platform business, overseeing its operations. Meanwhile, Adam Dunlop is set to become the new Chief Executive of TalkTalk Consumer, responsible for providing home broadband and phone services. Additionally, TalkTalk Business Direct is currently undergoing a sales process, with Daisy Communications being the most likely suitor for this business division.
Post a Comment