The company announced the cuts as it reported its first-quarter results. Earnings before interest, tax, depreciation and amortisation rose 34% to 拢91m, compared with 拢68m last time.
The reduction in staff numbers will bring Telewest's headcount down to 9,000. The company also said that it would merge its consumer and business divisions to create a more streamlined company.
In a statement, chief executive Adam Singer said: "Despite good operational improvement, we recognise that the capital markets' doubts about the sector and the company require us to do even more. We are in a climate in which capital is scarce and we have to respond to that."
The move saw Telewest shares rise 9% this morning to 11.45p. Last month, shares in Telewest hit an all-time low of 8.5p amid fears that the company may consider a bond-swapping deal similar to that which has wiped 拢7.4bn off rival NTL's debt.
However, despite persistent speculation that Telewest may look to do a similar deal, analysts are confident that the company can survive without it.
Today's price is a sharp fall from the 550p the company's shares were worth just two years ago, when confidence in cable was at its highest.
Telewest is still thought to be considering the option of selling its Flextech content arm, which would more than bridge a potential 拢300m funding gap at the cable operator. Telewest bought Flextech for 拢2.4bn in 2000, but its value has since fallen to about 拢500m.
Capital expenditure was expected to fall below 拢500m, down from between 拢500m-拢550m last time.
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