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KPN to eliminate 580 more FTEs in Business segment
2014-12-10 19:51:00| Telecompaper Headlines
(Telecompaper) KPN plans to eliminate an additional 580 positions at its Business segment, as part of its wider restructuration process for the division. At the same time, within the Consumer segment, KPN will hire an additional 200 FTEs to connect new customers and service existing customers. KPN said revenues have come under pressure from business customers migrating from traditional to IP based services as demand grows for new services such as Cloud & Hosting, Security and M2M solutions. Many Dutch businesses are also downsizing operations, postponing investments and rationalising ICT spend. The pressure on revenues cannot be fully offset by revenues from new services, forcing KPN to enact the additional job cuts, invest in new services and improve its quality of service. The FTE reductions in the Business segment will lead to a provision in the first half of around EUR 50 million. The cuts should be complete next year, leading to annual cost savings of EUR 45 million by 2016. KPN has submitted a request for advice to the works council.
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Category:Telecommunications