Everything Everywhere, the new merged company created by the merger of T-Mobile and Orange, could cut its headcount rapidly during the first year of operation in a bid to increase efficiency.
A sizeable £3.5 billion worth of savings has been tabled by the end of 2014, with some of it coming from the consolidations of the network infrastructure (masts and bases) of both networks. The rest though will come through employee cuts by eliminating duplication.
EE has already slashed its workforce by more than 13 percent, down to 16522 and its new CEO, Tom Alexander, has confirmed that more cuts are on the way, with back end staff being likely to bear the brunt of the efficiency drive.
He added that "We are going to have more customers, so we will need the staff. We don't just want to be the biggest now, we want to be the biggest and the best and we want to grow."
Interestingly, the company is already looking to increase its high street store count by more than 12 percent soon in a bid to reinforce its place as the biggest communications company in the UK.
We don't know what will happen to the strategic partnership between 3 UK and T-Mobile. They also had a joint venture called MBNL which aimed to achieve the same kind of efficiency cuts albeit at a smaller level.
Also in the balance is Virgin Mobile's partnership with T-Mobile; Virgin Mobile is the biggest mobile virtual network operator in the world and is worth around six million users.