Irish fixed line and mobile operator Eircom has announced that it will cut 2,000 of its 5,700 employees over the next 18 months in an aggressive push to cut its operational costs. The firm said that the measures will put it in line with the European average for employees and operational costs.
The company said that it will also embark on a five-year plan to further modernise its work practices, consolidate under-utilised office locations across the country and provide a new fibre broadband network to one million premises in Ireland.
Union representatives have been informed of the announcement and the company said that detailed discussions on the programme will commence shortly.
“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,” said Herb Hribar, Eircom Group CEO.
“The programme is ambitious but the challenges are not insurmountable. The business strategy remains sound and our strategic investment continues. Achieving these cost reductions is vital to providing the organisation with greater flexibility.”
With Amazon and Google launching smart home initiatives, have the telcos missed out on their chance to cash in on this market?
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