After gaining some funding and increasing its expansion plans, British telecoms company Truphone said on Tuesday it will get 51 million pounds ($80 million) in additonal financing from its existing backers.
Back in May, Truphone announced plans to offer a fixed-rate calling plan for business travellers in 66 countries and lowered its rates in June to coincide with European Union roaming rate drops in July.
“There is no question we are going to burn less cash than we previously did”
The bad news is that the company will also be eliminating about a quarter of its existing workforce as it looks for ways to profit after more than two years of losses — 1.5 million pounds in 2013, compared with a 34.4 million pound loss the previous year. Truphone is said to be trimming its headcount by “at least a couple hundred” out of the between 700 and 800 employed in October.
“There is no question we are going to burn less cash than we previously did,” Truphone Chief Executive Steve Robertson said in a phone interview with Reuters. “We are going to need less people.”
These cuts are necessary according to the company in order to “accelerate our progress towards profitability.”