NTL/Telewest merger will result in 6,000 jobs being cut

LONDON - NTL's merger with Telewest is set to cause the cable giant to shed 6,000 jobs, a third of its combined workforce, in a move to save £250m a year.

Chief executive Stephen Burch will reveal plans for the cuts when NTL's results are released tomorrow.

According to reports, some positions will be made redundant while others will be outsourced, most likely technical support roles, many of which are already contracted to IBM and Fujitsu, and call centre jobs, which could move to India and South Africa.

The former headquarters of Telewest, the smaller of the two firms, in Woking is expected to be closed, with some roles moved to NTL's head office in Hampshire and others being axed.

Virgin Mobile, which is being bought by NTL in a £960m deal, is not believed to be affected by the present round of job cuts, although reports suggest that this could change once the merger has bedded down.

At tomorrow's results, Burch is expected to explain more detail about the merged company's strategy.

On Friday, NTL missed out on securing any of the Premier League football rights packages that had been up for grabs, and investors will want to know what its television content strategy will be. Irish broadcaster Setanta won two packages, while Sky has the other four.

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