EIRCOM ANNOUNCES A RESTRUCTURING OF STATIONARY TELEPHONY.
Position | Company Operations |
On March 28, the Irish telecommunications company Eircom announced a restructuring of its stationary-line activities over the next two or three years which will affect 3,500 employees by outsourcing and downsizing. The restructuring plan will cost Euro 406 million and is expected to result in savings of Euro 76 million annually according to a press release by Eircom, the former national operator which was privatized in July 1999. Eircom has also decided to provide an Internet dimension to its activities and is seeking new acquisitions, as well as interests in joint ventures. The company anticipates that its annual results will match market expectations. Although expressing confidence in its future, the company does point out that the impact of the development of its new activities, as well as increased competition, constitute factors which are expected to have an adverse effect on profits over the near term.According to the announcement, which provides no quantified data, employees will be reassigned to outside commercial firms in which Eircom has an interest, while "arrangements for voluntary departures will also be...
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