Smart Telecom is to cut its staff by 250 to approximately 100 following a review of the business.
The company confirmed last week that 100 staff were due to be let go and said further redundancies were expected once a strategic review undertaken by NCB Corporate Finance was complete.
In a statement released this afternoon, the company said that there will be a "substantial reduction in other costs", an exit from low margin businesses and a "consequent reduction of the cash burn, in the immediate future, to a fraction of the burn previously sustained."
Smart's ceo Ciarán Casey said: "The decision by key investors to support the new strategy is very positive news for our customers, staff and other stakeholders."
"I am very satisfied with the outcome of the strategic review and I believe that the review will bring Smart very quickly to a cost base appropriate to our revenues and will reposition the Company for growth within broadband and corporate services.
"In the two weeks since the strategic review was announced, we have implemented major change in the Company. Significant challenges remain but we can move forward from this point with renewed optimism," he added.
Announcing its interim financial results today Smart revealed that turnover in the six month period to June 30th, 2006, was 33 per cent down on the corresponding period last year.
Administration expenses also rose by 61 per cent which gave rise to a "deficit before exceptional items of €17.9 million."
Three of Smart's directors - Paul Sullivan, Brian Timmins and Mr Casey - are transferring their 75 per cent interest in "The Property Company", which acquired Smart's current base in Citywest, "in trust ... whereby any gain arising from the Property Company accrues to Smart.
The remaining balance of 25 per cent is held by former ceo Oisin Fanning.
Smart has 16,500 broadband customers and is operating through 34 telephone exchanges around the country, as well as a number of metropolitan area networks (MANs), built by the Government in an effort to develop broadband coverage.
