Swisscom has confirmed plans to slash more jobs. The country's biggest telecommunications company is to shed a further 3,000 jobs by the end of 2002, while another 3,000 posts will be outsourced.This content was published on March 31, 2000 - 14:33
Swisscom has confirmed plans to slash more jobs. The country's biggest telecommunications company is to shed a further 3,000 jobs by the end of 2002, while another 3,000 posts will be outsourced.
Swisscom said further news on its outsourcing plans would be unveiled next month. The cuts bring the total number of job losses at the company to 7,000 since 1998 or more than 20 per cent of the workforce.
"Increasingly fierce competition is leading to substantial price erosion in the telecoms market," said a Swisscom statement. "Prices will continue to fall and we must take measures to lower costs - job losses are inevitable."
Prices in the Swiss telecommunications market have plunged since liberalisation in 1998 as rivals seek to undercut the former monopoly.
Swisscom would not say how many of the job losses would be enforced redundancies and said it would enter discussions with trade unions.
"We feel that Swisscom hasn't exhausted all the possibilities to save the existing jobs or to create new positions," says Alain Carrupt, of the Communications Union.
He wants Swisscom to put new proposals on the table before June, when unions are due to ratify a new contract with Swisscom negotiated just two weeks ago. But a Swisscom spokeswoman refused to rule out further job losses, saying only that the company would respond to market developments.
The company has also announced measures to boost its efficiency by merging its mobile and fixed-network divisions into a new business unit that would also incorporate pay phone and operator services.
Its Business Com division will be integrated into the marketing and sales departement, while a new e-business unit will be set up to expand e-commerce through the Internet portal, Blue Window.
By Michael Hollingdale
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