Irish incumbent operator Eircom is attempting to speed up its voluntary redundancy programme as part of its cost cutting strategy to fend off declining revenues.
According to the Irish Independent, CEO Paul Donovan wrote to employees informing them that…
Irish incumbent operator Eircom is attempting to speed up its voluntary redundancy programme as part of its cost cutting strategy to fend off declining revenues.
According to the Irish Independent, CEO Paul Donovan wrote to employees informing them that there were ‘difficult choices’ to be made in the coming months and that more drastic cost cutting measure were required to reduce the company’s E4bn debt pile.
Staff have been offered voluntary redundancy, which they can apply for by May 21. Eircom has been paying out an average of E150,000 to each departing employee under the scheme but Donovan has said that this sum would have to be reduced in future schemes.
Eircom is under increasing pressure from Vodafone and UPC in the Irish market and its falling revenues are coupled with a need to invest in new technologies.
Eircom, which was acquired by Singapore’s STT earlier this year currently employees around 6,800 staff.