Ireland’s eircom to cut 2000 jobs
01 November 2012 |
Troubled Irish telecoms group eircom has announced 2000 job cuts as part of a wider cost saving initiative over the next 18 months.
eircom has suffered a turbulent few years since being privatised in 2001 and applied for examinership earlier this year to avoid a default on its debt.
The company emerged from the process with a new ownership structure and is now controlled by 200 lenders, led by US investment company Blackstone.
The telco said that the cost saving programme will bring eircom in line with the European average for employees and operational costs when compared to its competitors and will reduce eircom’s workforce from 5,700 to 3,700.
eircom also announced a mordernisation of its work practices and consolidation of under-utilised office locations across Ireland.
“The challenges facing eircom are significant. They require a fundamental transformation in the way we are organised, the business activities we prioritise and the work practices we have adopted in order to substantially reduce our costs and become more efficient. The programme is ambitious but the challenges are not insurmountable. The business strategy remains sound and our strategic investment continues,” said Herb Hribar, eircom Group CEO.
He also added that by achieving cost reductions the company would be more flexible and deliver greater value, with new products and improved service to customers.
The cuts are part of eircom Group’s five-year business plan to provide a fibre broadband network to one million premises in Ireland and make the company more competitive.