Around nine in 10 Lycamobile UK workers have been warned they may lose their jobs in a widespread restructuring effort, raising concerns for an estimated 300+ employees just weeks before Christmas.
The telecoms company, known for its pay-as-you-go SIM cards that piggyback off EE’s mobile network, has announced it faces “pretty serious challenges” both financially and operationally, a report from The Guardian has revealed.
At a recent meeting at the company’s London headquarters, workers were warned that 316 roles could be at risk, leaving just 48 members of staff remaining in the UK.
Lycamobile could lay off 90%
The company’s general counsel, David Dobbie, said that increased competition, rising costs and “legacy technology issues” were to blame for the threat of job cuts. Dobbie also noted internal inefficiencies caused by overlapping between its UK and India operations.
Lycamobile’s French business was fined €10 million (£8.3 million) in 2023 after a Paris court concluded that it had been laundering money and conducting VAT fraud. In the UK, the company is also in trouble with the HRMC over an alleged £51 million unpaid VAT bill.
As a result of the job cuts, some roles like customer service would be moved to other countries, including India.
Dobbie promised that a consultation would start immediately, with affected workers set to be laid off no earlier than January 31, 2025.
A company spokesperson added: “As with all other UK companies, Lycamobile reviews its business model on an ongoing basis to provide the best possible service to its customers. No final decisions have been made on any changes to our model at this time, but we have announced a consultation process regarding strategic changes to align with our long-term growth goals and the challenges facing our business and other telcos, including a focus on digital transformation.”
No further updates were shared regarding its battle with the HMRC, which is ongoing.
Source: TechRadar Pro
--Agencies
