Published in Home

4,500 people axed at Telecom Italia Featured

by on12 June 2018 20943 times

Company begins restructuring

Telecom Italia signed deals with trade unions which will achieve savings equivalent to 4,500 layoffs through so-called ‘solidarity’ measures.

Solidarity measures are an unusual redundancy system where employees cutting their working hours for an equivalent pay reduction. The source said the measures agreed would affect 30,000 Telecom Italia workers for 12 months. It buys workers' jobs at the extent of sweeping pay cuts.

Presenting Telecom Italia’s new business plan in May CEO Amos Genish told unions the phone group needed to cut around 5,000 jobs and would do so through early retirements.

Telecom Italia has suffered a turbulent year as its largest shareholder, Vivendi, has battled with regulators and the Italian government over claims it exerts “de facto” control over the company. The government could yet use its “golden power” to try to force a break up of TI while Genish considers strategic options for the business that could lead to the disposal of units including Sparkle, its subsea cabling unit, and Inwit, its mobile masts business.

Last modified on 13 June 2018
Rate this item
(0 votes)