Shares in office provider Regus have soared by 74%, after the company said a radical shake-up had secured its long-term future.

Regus, which hires out serviced office space to companies, announced that it had shed 800 staff - equivalent to one-quarter of its workforce - between July and September.

Chief executive Mark Dixon said the sort of services Regus provides should thrive during the economic slowdown.

"More corporates will want to use us as they do their own restructuring... we think it will continue as the recession deepens.

"We are guardedly optimistic about the future."

In the red

Regus unveiled a third-quarter operating loss of �97.6m, including �87m of charges linked to restructuring and capacity reduction.

Mr Dixon, who has waived his salary since August, announced that he had taken his own holding in the company to nearly 63% after buying another million shares on Friday.

Regus, once one of the most fashionable companies on the London Stock Exchange, operates a network of serviced offices in 48 countries.

Its shares have fallen by more than 90% since the end of last year, amid fears over its financial stability.