NTL to shed 2,000 jobs

December 10, 2001 Posted: 1312 GMT

LONDON (CNN) -- NTL, the UK's largest cable-television operator, has announced it will cut 2,000 more jobs and freeze managerial pay in an effort to cut costs.

The company, which axed nearly 5,000 jobs in the past year, said the cuts would go in the UK under a compulsory and voluntary redundancy programme, reducing its UK workforce to 13,000.

NTL shares fell in New York on Friday to a record low of $1.12, valuing Britain's largest cable group at just $300 million, amid expectations in the bond market it will have to overhaul its balance sheet to cope with its $17 billion debt.

"The initiatives being announced today are a continuation of our cost-cutting programme. They are prudent in the current climate and will allow us to operate more efficiently," Chief Executive Barclay Knapp told Reuters.

Chief Operating Officer Stephen Carter told the news agency NTL, which is seeking to improve its customer service, would not get rid of any customer-serving employees.

Moody's Investors Service cut NTL's credit rating last month on concern it will have to convert bonds into other securities as revenue growth slows and interest costs rise, causing shares to fall a record 46 percent.

NTL shares have not yet started trade on Monday in New York, but shares in Telewest – another British cable operator -- dropped almost 6percent in early London trade.

NTL and Telewest, whose franchise areas are separate, pass about 16 million UK homes and together have 1.5 million digital customers.