TELECOMS group Cable and Wireless (C&W) warned yesterday that it could halve its UK workforce during the next five years.

The group, which acquired Energis last year, said it envisaged its workforce of 5,500 would be reduced to between 2,500 and 3,500 during the next four to five years.

The company expects to cut 350 jobs in this financial year.

C&W said the changes reflected plans to concentrate on fewer and larger corporate customers, while reducing the complexity of its products and systems.

The group employs about 2,000 staff in Bracknell, Berkshire, with others in Leeds, Manchester, Reading and London.

As part of the reshaping of its UK business, C&W said it planned to reduce its UK customer base from about 30,000 customers to 3,000 larger corporate customers and public institutions.

The cost savings expected from the merger of Cable and Wireless UK and Energis were likely to be greater than the £40m expected by the end of next month, C&W said.