+++ P.O. (BBG) Telecom Italia Is Said to Consider 7,000 Job Cuts Over 3 Years

P.O.

One more sign, as I wrote before, that the current telecoms business is coming to an end.

Look at the roaming in Europe…

It has been abolished…

And why…?

No one with an up to date cell phone was paying for it anymore…

Look at the several tech options one has to call anywhere from any location…

Whatsapp is the more widely used.

You can call anywhere in the World for free…

What a fantastic evolution for families that have relatives in different countries.

The Grandmother in Europe calling all the time, for free, her Granddaughters and Grandsons in Australia for example…

What do the telecoms companies get out of this?

Except for supplying the access to the Internet, nothing…

It’s like the  Post Office…

It’s a dying business.

Franciso (Abouaf) de Curiel Marques Pereia

(Bloomberg) — Telecom Italia SpA is considering cutting
about 7,000 jobs in Italy, or 14 percent of its local workforce,
to make the former phone monopoly more profitable and efficient,
according to people familiar with the matter.
The company led by Chief Executive Officer Amos Genish has
started informal discussions with unions to review ways to
reduce labor costs while remaining in compliance with Italian
law, said the people, who asked not to be identified because the
talks aren’t public. Telecom Italia would be in favor of
reducing the headcount through about 4,000 early retirements and
about 3,000 voluntary buyouts over three years, the people said.
Telecom Italia aims to hire about 2,000 young employees,
funded by reducing the working hours of about 3,000 other
people, the people said. All the measures are still under
discussion and no final decision has been made. The company will
meet with unions on Jan. 18, people said.
Telecom Italia, whose biggest shareholder is French media
conglomerate Vivendi SA, is planning to set aside about 700
million euros ($834 million) to pay for the early retirements
and voluntary buyouts, one of the people said.
A Rome-based spokesman for Telecom Italia declined to
comment.
Like other big European phone companies, Telecom Italia
needs to increase investments to speed up its network even as
revenue shrinks because of competition. The Italian phone
carrier’s annual sales fell in 2016 to 19 billion euros, down 10
billion euros from 2011, while earnings before interest, tax,
depreciation and amortization fell 33 percent in the same span.
Employees in Italy dropped to 51,122 from 56,838 in that period.
The new Telecom Italia 2018-2020 business plan, which will
be unveiled March 6, will include measures for reducing
overlapping positions, according to a document obtained by
Bloomberg News. Telecom Italia is also committed to
“accelerating generational turnover” and aims to firm up its
labor plans by early February, according to the document.