The telecoms firm Cable & Wireless (C&W) has said it may have to cut more jobs after it reduced its revenue forecasts for its global business.

The firm said it now expected first-half revenue at its global division to drop by 6%, against a previous forecast of zero to 10% growth.

C&W said it was reviewing costs which could lead a reduction in staff numbers at the global division.

"It is likely there will be further job losses, but we will consult and communicate any developments to employees first," a company spokesman said.

C&W's global division employs about 12,000 people, with a large proportion in the UK at sites in London, Birmingham, Warrington and Bracknell.

In early morning trade on the London Stock Exchange, C&W shares slid 2% to 135p.

Tough trading

C&W's global division supplies services to large firms in the US, Europe and Japan.

The business has struggled in the face of weak demand for telecoms services and tough price competition from rivals.

C&W said the drop in revenue meant the global division would report a half-year loss - before interest, tax, depreciation and other one-off items - of about �120m ($184m).

Analysts had forecast figures of between a �125m loss to a �5m profit.

"Cable & Wireless Global's trading environment continues to be difficult," said chief executive Graham Wallace.

"Actions to improve substantially the profit and cash flow performance of Cable & Wireless Global are under way."

C&W said it would cut capital expenditure at the global division by at least �200m to below �450m for the year.

'Profit warning'

The company still has a good cash pile in reserve, and it said it expected to have about �2.2bn left by the end of September.

But analysts said this was not enough to calm investors' nerves.

"The cash position is obviously better than expected. But I don't think that's enough for the market to forgive Cable & Wireless for what we see as the fourth profit warning in a row," said Andrew Darley, an analyst at investment bank ING Barings.