Irish telecoms provider to reduce headcount by 2,700 staff over the next 18 months in an attempt to reduce outgoings
Eircom will cut its workforce by 2,000 employees (35 per cent) from its current level of 5,700 as part of a cost savings programme over the next 18 months.
In May, a five-year business plan put forward by Eircom Group to cut its debts by 40 per cent from €4.1 billion to €2.3 billion was approved by the High Court. The move allowed it to exit examinership on June 11, a process whereby the protection of the court is obtained to assist the survival of a company.
Around 5,000 jobs were expected to be saved, with up to 1,000 to be lost through a voluntary redundancy programme over the next few years.
Changes to the Eircom business within the last cost saving measures include further modernisation of its work practices and the consolidation of under-utilised offices across the country.
The company will meet with staff over the coming weeks to provide greater detail on the programme. This will be led by CEO Herb Hribar (pictured) and the senior management team. Union representatives also have been informed of the announcement.
Eircom said the drive to greater operational efficiency along with its strategic infrastructure investment underpin its five year business plan that will not only provide a new fibre broadband network to one million premises in Ireland, but “also transform Eircom into a modern, competitive organisation with enhanced capabilities”.
Eircom Group CEO Herb Hribar 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 subsequently reduce our costs and become more efficient.
“The programme is ambitious but the challenges are not insurmountable. The business strategy remains sound and our strategic investment continues.
“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.”