British Telecom is axing 200 of the 1,000 jobs at its Internet division Openworld, one of the heaviest culls in the cost-cutting sweeping the industry.
A spokesman said BT had thrown resources at the division when it started up, 'but it's now time for tailoring off the number of people'.
The need for fewer people resulted partly from a merging of brands and support systems in the division, he said. It has replaced its pay-as-you-go Internet brand BT Click with a similar option within its main dial-up online business BT Internet.
Affected staff will be offered jobs elsewhere within the BT group, which has a ongoing programme to reduce its workforce. 5,000 people left the company in the third quarter.
Openworld incurred an operating loss of £107m sterling in the quarter on turnover of £68m.
