Lycamobile has reportedly warned almost 90% of its staff in the UK over possible redundancies.
Some 316 staff risked being laid off as a result, according to a Guardian report, leaving just 48 in the UK.
Staff at the telecoms firm’s London headquarters were told of “pretty serious challenges” on Friday, with reductions set to wait until after January 31.
General counsel David Dobbie cited competition, inflation and legacy technology issues in his address to staff, the Guardian reported.
Inefficiencies around overlapping divisions in the UK and India were also said to be highlighted, with Dobbie adding some services would be moved offshore.
Lycamobile, which sells pay-as-you-go sim cards, penned a £24 million loss in 2022 and has clashed with HMRC over allegations of £51 million in unpaid VAT over phone deals.
The company’s French business was also fined €10 million (£8.3 million) in Paris last year over money laundering and VAT fraud.