Eircom has announced plans to cut its workforce by more than a third, with a loss of 2,000 out of 5,700 jobs.
The company said yesterday that it was introducing “a programme to accelerate a range of cost savings measures that will significantly reduce the group’s cost base over the coming 18 months”. The cutbacks, “will bring eircom in line with the European average for employees and operational costs”, the company statement continued.
Commenting on the announcement, Herb Hribar, eircom Group CEO said, “The challenges facing eircom are significant. They require a fundamental transformation in the way we are organised, the business activities we prioritise and the work practices we have adopted in order to substantially reduce our costs and become more efficient. Achieving these cost reductions is vital to providing the organisation with greater flexibility. It will enable eircom to deliver greater value, exciting new products such as fibre broadband and improved service to its customers across Ireland.”
Reacting to the news this morning, Minister for Communications said the expection is that the the job losses will be on a voluntary basis and that he believes it will be very difficult to achieve those numbers in the current economic climate.
He continued: “I would hope that the company would be able to efficiently restructure its business without having to scale down as much as the figure in the public domain.
“We will see when discussions start between company and unions whether that figure is as severe as it seems this morning.”