KPN to cut 8,000 jobs over 5 years
1 March 2005, AMSTERDAM — Dutch telecoms firm KPN announced further job cuts on Tuesday, unveiling plans to reduce its workforce by about 8,000 by 2010.
1 March 2005
AMSTERDAM — Dutch telecoms firm KPN announced further job cuts on Tuesday, unveiling plans to reduce its workforce by about 8,000 by 2010.
The layoffs — ranging in 1,500 to 1,750 each year until 2010 — are designed to save the company EUR 850 million per year.
Much of the job losses (3,000) will come about as the company modernises its network, which will require less maintenance.
The losses come on top of thousands of job cuts in recent years and make KPN one of the most aggressive European telecoms firms in terms of cost savings.
KPN believes that simplifying its network means it will require a smaller workforce in future and help achieve significantly lower structural costs. It is also planning a "big push" into broadband and IP telephony services.
Company chief Ad Scheepbouwer said the job cuts would mainly affect KPN's fixed line business, which is being confronted by tough competition.
The statement comes as KPN also announced profit after tax on Tuesday of EUR 1.5 billion in 2004, compared with EUR 2.7 billion in 2003, but KPN received a one-off tax repayment of almost EUR 1.1 billion in 2003. Turnover fell from EUR 11.8 billion to 11.7 billion last year.
Scheepbouwer was pleased with the results, attributing them to "a near doubling in the number of DSL connections, as well as successfully defending our market share in our traditional telephony business and strongly expanding our international operations".
But KPN warned profits in 2005 were likely to fall, as it invests heavily in its broadband and IP telephony services.
[Copyright Expatica News 2005]
Subject: Dutch news