Struggling German telecoms operator MobilCom said today it would freeze the rollout of its new generation (3G) mobile network and cut over a third of its workforce in a bid to salvage parts of its core business.
MobilCom narrowly avoided insolvency earlier this month when the German government brokered a €400 million rescue deal after its heavily indebted partner France Telecom cut off vital funding to the group.
MobilCom, which posted a net loss of €172.8 million in the second quarter, said it would shed 1,850 full time jobs from its 5,000-strong workforce in a plan aimed at saving some €130 million a year.
"A short term operational aim is to return the service provider business to profitability in the first half of 2003," the group said in a statement.
MobilCom shares, which have collapsed in value as the group's troubles unfolded over recent months, were sharply higher, trading up 17.62 per cent in early morning trade.
