Telecom company KPN is scrapping 580 jobs at its business division with the aim of improving ‘effectiveness’.
KPN hopes the measure will save €45m a year from 2016. The company will take a €50m provision next year to pay for the reorganisation, it said in a statement.
The company says business clients are making less use of more traditional services as they switch to less labour-intensive services based on IP technology. Demand for cloud and hosting services is also increasing, KPN says.
KPN chief executive Eelco Blok is quoted as saying the company would do all it could to find alternative employment for the workers who will lose their jobs. ‘It was a difficult decision… but necessary to strengthen our position in the business market,’ he said.
At the beginning of this year, KPN announced plans to cut between 1,500 and 2,000 jobs by 2016 to generate savings of €300m.
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