Lycamobile warns workers almost 90% of employees might lose their jobs

Most Lycamobile UK employees have been advised they’re liable to layoffs
Nobody will lose their job earlier than the tip of January 2025
The corporate is in hassle with the HMRC and French courts

Round 9 in 10 Lycamobile UK employees have been warned they could lose their jobs in a widespread restructuring effort, elevating issues for an estimated 300+ workers simply weeks earlier than Christmas.

The telecoms firm, identified for its pay-as-you-go SIM playing cards that piggyback off EE’s cellular community, has introduced it faces “fairly critical challenges” each financially and operationally, a report from The Guardian has revealed.

At a current assembly on the firm’s London headquarters, employees have been warned that 316 roles could possibly be in danger, leaving simply 48 members of workers remaining within the UK.

Lycamobile might lay off 90%

The corporate’s basic counsel, David Dobbie, stated that elevated competitors, rising prices and “legacy expertise points” have been in charge for the specter of job cuts. Dobbie additionally famous inside inefficiencies attributable to overlapping between its UK and India operations.

Lycamobile’s French enterprise was fined €10 million (£8.3 million) in 2023 after a Paris courtroom concluded that it had been laundering cash and conducting VAT fraud. Within the UK, the corporate can also be in hassle with the HRMC over an alleged £51 million unpaid VAT invoice.

Because of the job cuts, some roles like customer support could be moved to different international locations, together with India.

Dobbie promised {that a} session would begin instantly, with affected employees set to be laid off no sooner than January 31, 2025.

An organization spokesperson added: “As with all different UK firms, Lycamobile evaluations its enterprise mannequin on an ongoing foundation to offer the absolute best service to its prospects. No ultimate choices have been made on any adjustments to our mannequin right now, however now we have introduced a session course of concerning strategic adjustments to align with our long-term development targets and the challenges going through our enterprise and different telcos, together with a concentrate on digital transformation.”

No additional updates have been shared concerning its battle with the HMRC, which is ongoing.

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