that has to deal with losses of around £11 billion is going to have a terrible time just staying afloat, and the first duty of a board of directors is to take action to reduce overheads and hope to maintain revenues. The biggest single overhead for any company is its wages bill, and it's no wonder that NTL are shedding people like leaves in an autumn gale. If you can do this and maintain your revenue stream you have a fighting chance of survival. Having said that, NTL operate in one of the world's most competitive markets, and unless they maintain their service levels whilst all this weight-shedding goes on they won't come out on the other side.
We, the public don't have a particularly wide range of cable providers from which to choose, and we would do well to remember that. For many people, a cable service is the only broadband option, and if that goes they face a return to 56k dial up connections.