France Telecom to reduce 23 thousand jobs

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France Telecom has announced that it will cut 23,000 jobs, about 11 percent of its workforce. The measure is part of a cost reduction plan that will be implemented over the next three years and which also provides for the hiring of 6 thousand new jobs, which reduces to 17 thousand the actual departures.

The new restructuring plan for the incumbent Frenchman was announced during the annual results presentation of the operator, which employs 318,000 workers.

At this event, the company said that it foresees a decrease in profitability for the coming years with the expansion of alternatives such as voice over IP or fixed communications offers. low cost.

France Telecom expects VoIP to steal up to 40 percent of the fixed line retail business. Still, it guarantees that the acquisitions policy is to be maintained but that from now on it will be very selective.

The incumbent French closed 2005 with profits of 5.7 billion euros, practically doubling the values ​​obtained last year and sales of 49 billion dollars, an increase of 6 percent, partly justified by the acquisition of Amena in Spain.

EBITDA stood at 18.4 billion euros. The vast majority of the redundancies announced by France Telecom will take place in the domestic market, 16 thousand of the 17 thousand predicted.

Related News:

2005-07-27 – France Telecom announces offer to acquire 80% of Amena

2001-08-29 – France Telecom may lay off 11,000 employees by 2004