Nearly 90% of the workforce at Lycamobile, a telecommunications firm in the UK, has been informed that they may face job losses, according to information obtained by the Guardian. This announcement has instilled fear among over 300 employees regarding their job security, particularly in the lead-up to the Christmas season. Lycamobile, which is owned by Allirajah Subaskaran, a British-Sri Lankan businessman and significant Tory donor, specializes in providing pay-as-you-go SIM cards. These products are especially favored by low-income workers seeking affordable options for making international calls to their families, as well as for domestic communication within the UK.
Subaskarn, a multi-millionaire originally from Sri Lanka, has withdrawn a substantial sum of money from Lycamobile to make significant investments in Bollywood cinema. However, over the past two years, the films he has produced have not performed well, resulting in considerable financial losses. Over the past three months, he established a new political party in Sri Lanka, which resulted in significant financial losses during the election campaign. In the election held on November 14th, his party failed to secure even a single seat in the Sri Lankan Parliament. This outcome has further exacerbated the challenges faced by his company.
On Friday, staff at the Lycamobile’s headquarters in the City of London were told that the company was facing “pretty serious challenges” and was planning to cut up to 316 jobs, leaving as few as 48 in the UK. over an alleged £51m unpaid VAT bill related to phone “bundles” sold to customers. Last year, the group’s French business was fined €10m (£8.3m) by a Paris court for money laundering and VAT fraud. Addressing staff on Friday, the company’s general counsel, David Dobbie, blamed competition, technology issues” and internal inefficiencies due to overlap between divisions based in the UK and India. He did not mention the company’s tax disputes.
Allirajah is reportedly entering politics in Sri Lanka himself, through an attempt to unite Tamil parties in the country. There are, however, uncertainties surrounding this matter. Many individuals assert that his attempts to enter Sri Lankan politics are motivated by a desire to strengthen his influence over the company he manages in Sri Lanka. The situation regarding Lyca Mobile’s operations in the UK is marked by considerable uncertainty. Many employees are experiencing feelings of insecurity and surprise in response to recent developments.
Source : Guardian UK : https://www.theguardian.com/business/2024/dec/16/lycamobile-tells-nearly-90-of-uk-staff-they-could-lose-their-jobs
