CABLE & Wireless, the UK's second-biggest phone company, plans to cut as many as 3,000 jobs over the next "ve years, reducing its workforce in the UK by about half amid increased competition. Cable & Wireless plans to focus on about 3,000 of its larger, more pro"table customers such as Lloyds TSB and Volkswagen, cutting its client list from about 30,000.

The company has failed to fend off competition in traditional phone services from rivals including Thus.

Shares of Cable & Wireless have fallen 93% in the past six years. Cable & Wireless has cut jobs and shed businesses to revive pro"t. It will be interesting to see how the company tries to reinvigorate its customer base in the coming year after recent upheavals.