Cable & Wireless, posting its first profit in three years, has announced the surprise departure of Kevin Loosemore in a shake-up which will bring further jobs losses and office closures to UK operations.

Mr Loosemore, group chief operating officer, was to quit in March after helping to oversee the telecoms company's exit from the US at a cost of £220 million, £80 million less than had been expected. The move left him in charge of C&W's international businesses, based largely in the Caribbean.

"Kevin indicated that he preferred not to take on a role that was exclusively based outside the UK," C&W said, announcing the appointment of Harris Jones, the former chief executive of T-Mobile UK, to oversee the foreign businesses.

The telecoms company also confirmed reports, which it dismissed as "speculation" last week, that Royston Hoggarth was to leave as head of the UK unit as Francesco Caio, group chief executive, took charge of the business.

"The restructuring of the UK and the consequent creation of a smaller leadership team has removed the need for an additional UK chief executive," Mr Caio said.

The revamp will cost a 600 jobs in the UK and on the continent, in addition to the 1,500 axed since June last year, with the group's London headquarters closed and operations switched to Bracknell. Annual cost savings would reach £50 million by March 2006.

The company also announced a growing emphasis on broadband as it seeks to expand from the traditional telecoms markets in which it faces bitter competition.

Richard Lapthorne, the C&W chairman, said: "It is clear that in mature markets, future profit growth will come from cost reduction and from improving the sales mix."

The announcement came as C&W revealed a profit of £204 million for the April-to-September half compared with an £80 million loss a year before.

While revenues slid by 7 per cent to £1.61 billion, operating costs slid by nearly 10 per cent.

The comapny also announced a £250 million share buyback programme, funded in part proceeds from the sale of non-core and Japanese businesses.

The report was well-received by the CIty.

"Operationally this morning’s results were slightly weaker than our expectations, but the further restructuring, management changes, a share buyback offset this disappointment,"Seymour Pierce said.

Cable & Wireless shares soared 9 per cent in early deals before losing some ground to stand up 7.25p at 116.75p.

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