Colt swinging axe on 250 staff in bid to turn company around

IT group Colt is set to cut 250 jobs as it attempts to transform its struggling telecoms business and focus on becoming a successful data centre operator.

The company, which saw revenues dip in the third quarter of the year, said losing five per cent of its workforce would “accelerate the transformation of its business”.

The losses come as part of a €44m (£35.8m) cost-saving plan designed to protect Colt’s profit margins. The firm’s legacy telecoms business has been hit by difficult conditions and chief executive Rakesh Bhasin has outlined a plan to focus on the growing data centre market. Earlier this week Bhasin poached Telecity’s Adriaan Oosthoek to run the data centre business.

“Given the economic backdrop, we believe now is the right time to accelerate the transformation of our cost and skills base,” Bhasin said. “This will result in Colt becoming a more efficient business, and one that is better positioned to execute on its strategy.” The City welcomed yesterday’s news, sending the shares up 4.3 per cent.