Orange and T-Mobile merger may see 1,000 job cuts in UK: Report

LONDON: More than 1,000 jobs could be lost in Britain as a result of Orange and T-Mobile's merger to create the country's largest mobile phone operator, says a media report.

The new joint venture (JV) would create the country's leading mobile operator with a combined customer base of around 28.4 million, representing about 37 per cent of the subscribers in the UK.

"The deal is expected to lead to between 1,000 and 2,000 British job cuts as the company will cull some of its combined workforce of 19,000," The Telegraph said.

Citing Orange Chief Executive Officer Tom Alexander, who will lead the new group, the report said there will be "some job losses".

France Telecom, the owners of Orange, and Deutsche Telekom, which is the parent company of T-Mobile said the deal would create savings of about 3.5 million pounds.

The combination would bring substantial benefits to consumers. It would result in expanded network coverage and enhanced indoor and outdoor network quality for 2G and 3G services, as well as better customer proximity through a larger network of own shops and improved customer services.

The T-Mobile UK and Orange UK brands would be maintained separately for 18 months after completion of the transaction. During that period management would review branding alternatives for the JV and would develop a new branding strategy recommendation for shareholder's approval.