December 3, 2008

Telecom Italia cutting another 4,000 jobs

Telecom Italia announced Wednesday it would cut another 4,000 jobs on top of the 5,000 it sliced just three months ago.

In addition, the Italian news agency ANSA reported Telecom Italia would sell its non-core assets for an estimated 3 billion euros ($3.8 billion).

Franco Bernabe, chief executive officer of the telecommunications behemoth, said the reductions amount to 14 percent of the company's total workforce, including half of its managerial positions.

Bernabe said Telecom Italia will spend the next three years focusing its attention on its operations in Italy, Brazil and Argentina. Any of its businesses elsewhere would be subject to sale, he said.

ANSA said Telecom Italia has already sold off its interests in France and now appears ready to jettison Hansenet in Germany. Also apparently up for sale would be its other European broadband operations, its presence in Cuba and its Telecom Italia Sparkle services.