{"id":35804,"date":"2023-09-22T15:33:25","date_gmt":"2023-09-22T14:33:25","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=35804"},"modified":"2023-09-27T11:35:10","modified_gmt":"2023-09-27T10:35:10","slug":"job-losses-as-isp-talktalk-demerges-into-three-uk-businesses","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/09\/job-losses-as-isp-talktalk-demerges-into-three-uk-businesses.html","title":{"rendered":"Job Losses as UK ISP TalkTalk to Demerge into Three Businesses UPDATE"},"content":{"rendered":"

Broadband ISP TalkTalk<\/a> has this week informed staff of their plan to formally demerge the group into three separate businesses for consumers, businesses and wholesale. Under the plan, the full legal demerger aims to be completed by 1st March 2024, but some redundancies are expected.<\/p>\n

As previously reported, the long-established internet and phone provider – home to 4 million broadband customers – is currently in the process of trying to deal with pressure from its existing debt pile, which will involve selling off parts of their business (here<\/a> and here<\/a>) – starting with their business-to-business (B2B) arm. But doing that requires some wider changes in the group, and that’s where this week’s developments may come into play.<\/p>\n

NOTE:<\/strong> Global investment firm KKR recently agreed to provide TalkTalk<\/a> with a \u00a375m non-recourse financing facility to help keep things rolling (here<\/a>).<\/div>\n

According to ISPreview’s sources, yesterday saw TalkTalk<\/a> announce to staff the formal demerger of their group into three separate businesses (TalkTalk Consumer, TalkTalk Business Direct and the Wholesale Platform), with separate operations expected to be effective from 1st November 2023 and the full legal demerger completed by 1st March 2024.<\/p>\n

As part of this change, Tom O\u2019Hagan<\/strong> is to be appointed the CEO of their Wholesale Platform business, which sounds as if it will be adopting a new brand name \u2013 PlatformX<\/strong>, although this should perhaps be considered a working title. At the same time, Adam Dunlop<\/strong> will become the new CEO of TalkTalk Consumer, which is currently in the process of returning to its original core focus of home broadband and phone services.<\/p>\n

The provider also informed staff that TalkTalk Business Direct (home to 80,000 business customers) is, as previously reported, still in the process of being sold, and thus they don’t currently appear to be making any big changes to the existing management. This process is still expected to complete over the coming months.<\/p>\n

Naturally, a change this big doesn’t happen without consequences, and the information we’ve seen suggests that 50 roles<\/strong> are at risk of redundancy, pending a formal 30-day consultation that started today. But the provider will continue to maintain their HQ in Salford (Soapworks) and their satellite<\/a> offices, even though over time there will be more separation between the consumer and wholesale sides.<\/p>\n

The announcement focuses a lot on highlighting how the changes will give each business greater autonomy and separation of management, which they hope may also help to attract new investment. But it may also make the process of separating and selling off some of their current divisions easier, although it remains to be seen how they approach that with their wholesale side (wholesale is closely linked to their consumer services).<\/p>\n

We queried all of this with TalkTalk, but the provider declined to comment on the demerger.<\/p>\n

UPDATE 27th Sept 2023<\/strong><\/p>\n

TalkTalk has today confirmed all of this with an official announcement, which doesn’t add anything new to what we already reported above.<\/p>\n","protected":false},"excerpt":{"rendered":"

Broadband ISP TalkTalk has this week informed staff of their plan to formally demerge the group into three separate businesses for consumers, businesses and wholesale. Under the plan, the full legal demerger aims to be completed by 1st March 2024, but some redundancies are expected.<\/p>\n","protected":false},"author":1,"featured_media":33490,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,74],"class_list":["post-35804","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-talktalk"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nJob Losses as UK ISP TalkTalk to Demerge into Three Businesses UPDATE - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Broadband ISP TalkTalk has this week informed staff of their plan to formally demerge the group into three separate businesses for consumers, businesses\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/09\/job-losses-as-isp-talktalk-demerges-into-three-uk-businesses.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Job Losses as UK ISP TalkTalk to Demerge into Three Businesses UPDATE - 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