Internet service provider (ISP) Tiscali has announced it will reduce its UK workforce by half as part of a corporate restructuring.

The 250 job losses come as the company integrates its three recently acquired ISPs - LineOne, World Online and Liberty Surf - into one operation under the name Tiscali UK.

"As previously announced, the integration of Tiscali's new acquisitions in the UK will involve a reorganisation of staff, among other measures, to eliminate overlap or duplication of roles and improve operational and cost efficiency," the company said in a statement.

"As a result, Tiscali plans to halve staff numbers by the end of July 2001," it added.

The company said it has about 500 employees.

Tiscali's recent buying spree means it had a number of internet operations on its hands with a massive duplication of jobs.

Cuts will affect all areas of the operation including in the content provision, IT, human resources and finance departments.

Buying spree

The company has spent more than 4.1bn euros (�2.5bn) to become one of Europe's largest internet service providers.

United Business Media and British Telecom sold LineOne, one of Britain's best known ISPs, to Tiscali in April for a fraction of its valuation at the height of the internet boom.

The Italian company, now the second biggest ISP in Europe and the fourth largest in the UK, paid �62.5m in cash and shares for a business once valued at more than �1bn.

Tiscali acquired LibertySurf, a French ISP, in January, and WorldOnline in December last year.

Losses cut

Tiscali reported in May that it had cut losses in the first quarter and was confident of boosting revenues through its acquisitions.

The first-quarter loss before interest, tax, depreciation and amortisation fell to 58.1m euros (�35.8m) from 140m euros in the last quarter of 2000.

The figures excluded Liberty Surf, LineOne and other acquisitions, Planet Interkom and surfEU.