British telecommunications firm Cable and Wireless (C&W) said it would axe 2,000 to 3,000 of its British workers by 2010 in a radical restructuring that will slash customer numbers by 90.0 percent.

C&W currently employs a total of 5,500 workers in Britain, of which 350 are to leave the group before the end of March 2006, the group said in an official statement. The group, which is suffering from fierce competition from the likes of BT, also said it would cut its customer base from 30,000 to just 3,000 customers as it sought to concentrate on simplified products for larger companies and institutions.

"Cable and Wireless expects that, by concentrating on fewer, larger customers and reducing complexity in its products, systems and processes, it can set new standards for customers' service experience while, at the same time, reducing costs," C&W said Tuesday.

"As part of the reduction in costs, the company expects that UK headcount will fall from more than 5,500 to between 2,500 and 3,500 over the next four to five years." By the end of September this year, the measures would result in a 9.0-percent reduction in monthly operating expenses, while customer numbers in Britain would drop to around 18,000, the group added Tuesday.

C&W also repeated its long-term goal of generating annual revenues of 2.0 billion pounds and "double-digit" operating profit margins. In reaction to Tuesday's news, the share price of C&W was showing a fall of 1.38 percent in early afternoon London trading as analysts questioned whether the long-term targets could be achieved. The British capital's FTSE 100 index, on which the group is quoted, fell by 0.44 percent to 5,850.20 points.