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Swisscom restructuring cuts 400 jobs

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Swisscom restructuring cuts 400 jobs
11:19 CET+01:00
Switzerland's dominant telecoms operator Swisscom says it will cut 400 jobs next year while creating 300 new positions in "growth areas."

In a statement issued on Wednesday, the company said the restructuring was necessary owing to the "fundamental changes" in the telecommunications market, with new business models compensating for the rapid erosion of its original telephony business.

"Next year, Swisscom will create around 300 jobs in growth areas, while at the same time reducing around 100 managerial and 300 jobs which are governed by collective labour agreement," said the company, which at the end of September counted 16,415 employees.

A company spokeswoman said the job cuts would mainly affect support services, while client services would be strengthened.

Swisscom said a social plan would be made available to help the affected employees.

The company said the restructuring cost would amount to around 50 million francs ($53.6 million), which would be booked during its fourth quarter.

During the first half of the year, Swisscom saw its net profit slip 3.5 percent to 928 million francs on sales down 1.8 percent year-on-year at 5.62 billion francs.

The company's third-quarter earnings are set to be released on November 8.

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