Telewest to cut 1,500 jobs

LONDON, England (CNN) -- Telewest, the debt-laden British cable operator, plans to cut 1,500 jobs in an effort to make a profit.

Britain's second-largest cable operator said on Thursday its first quarter loss declined to £166 million ($243 million), or 5.8 pence a share, from £209 million, or 7.2 pence, a year ago.

Like its bigger rival NTL, Telewest (TWT) is under pressure to slash its £5.3 billion debt. NTL has swapped two-thirds of its $17 billion debt for stock -- effectively handing the company over to bondholders. Fears that Telewest could do the same has sent its stock plunging more than 80 percent this year.

"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," said Chief Executive Adam Singer in a statement.

Its plan to reduce its workforce from 10,500 to 9,000 would save the company about £50 million a year.

Telewest's stock rose almost 12 percent to 12 pence in early trading on Thursday.

The company has discussed restructuring options with its major shareholders, Liberty Media (L) and Microsoft (MSFT), but was told it was not necessary if it hit financial targets, Telewest said. It also said in the "worst case" scenario it had enough cash for 15 months.

Earnings before interest, tax, depreciation and amortisation -- a measure of profitability for a debt-laden company -- rose 34 percent to £91 million in the first three months of this year, but was down from £94 million in the previous quarter.