Staff at 3 are expecting a wave of redundancies to be announced next month as owner Hutchison Whampoa completes its annual review of the business.

Loss-making 3 UK, which currently employs around 2,500 people, is expected to move to make savings as part of the review.

Following last year’s review, 3 outsourced its network operations to Ericsson in a cost-saving drive; this time job cuts are expected.

A spokesman for 3 declined to comment on or give the scale of the expected redundancies, but told Mobile: ‘We are in our end-of-year planning process and planning for 2007. That process is ongoing. This is a competitive marketplace and we are constantly reviewing our approach to achieving our goals.’

Where the axe will fall is still unclear, but 3’s sales team and expanding retail operation are not expected to be affected.