THREE stores in York are facing closure after mobile phone group mmO2 today announced it was cutting 1,400 jobs.

About 18 staff at the BT Shop in Spurriergate, as well as at BT Cellnet and at the Nokia Store, both in Coney Street, were expected to be officially informed of the decision at lunchtime today.

But it will be around three months before the group announces which stores are to be targeted, following consultation with the unions and staff.

The mmO2 group, which demerged from BT in November, runs DX Communication, The Mobile Phone Store, BT Shops, BT Cellnet and Nokia Stores across the UK.

There are nine of these stores in North Yorkshire and 17 in South Yorkshire and Humberside.

The cuts were expected to affect back office, technical and administrative staff, and 133 of its existing 320 high street stores were expected to close.

The group also has a 40 per cent stake in The Link, which is run by Dixons, but these stores will not be affected by the cuts.

Chief executive Peter Erskine said: "The mobile phone sector is changing.

"Today's announcement is in line with our strategy of improving the operational performance of our businesses while continuing to focus on providing the highest level of service."

The company said it would also cut 500 more jobs in its German subsidiary, VIAG Interkom, in the coming financial year.

A spokeswoman said that voluntary redundancies were being sought and employees would be offered help to find alternative employment.

Updated: 15:25 Tuesday, February 05, 2002