Monday, September 5, 2011

New Everything Everywhere CEO Swantee slashes management jobs

September 2, 2011 — 12:42pm ET | By Paul Rasmussen


Everything Everywhere's (EE) new CEO, Olaf Swantee, has taken radical action to revitalize the languishing company by replacing much of the management team with fresh faces.

On his first day, Swantee reduced the company's senior management team from 26 to 10, while demoting 10 vice-presidents and hinting that more jobs cuts are likely.
The most prominent exec to depart EE was Richard Moat, the company's deputy CEO and finance director. Moat was seen the favoured successor to Tom Alexander, who hurriedly resigned as CEO in July
"The first step for the company was to build a more simplified structure for the company," Swantee said in a conference call, according to the Daily Telegraph. " I am thrilled to announce the new team today. It was important to me and shareholders to build a smaller team."

The new management team includes no executives from T-Mobile UK, leading analysts to question whether the merger of Orange UK and T-Mobile UK was ever an equal partnership, as was promoted at the time of the merger.
"There is certainly a sustained theme [of former Orange executives taking control of the company]," Mark James, a telecoms analyst at Liberum Capital, told the Guardian. "There's still a 50:50 ownership structure, but it does seem a lot more orange than pink [T-Mobile's corporate colour]."

Swantee announced that a new strategic review of EE was already underway which is likely to result in more job cuts. The company has already reduced its headcount by over 1,200 since the merger.

Swantee faces an uphill task of delivering the promised £3.5 billion cost savings, with only £203 million achieved to date, and putting EE back on a growth path. The revenue results for EE's second quarter highlighted a fall of 3.4 per cent to £1.66 billion, while total subscriber numbers went from 27.93 million to 27.54 million. The firm also lost a further 1.2 million pay-as-you-go customers over the past 12 months.

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