Telecom Operator Romtelecom To Lay Off 1,000 To 1,400 Employees This Year

At the end of 2010, the telecom operator had about 8,600 employees, 1,400 fewer than in 2009.

The operator transferred 400 of its employees to Ericsson Romania, 400 others left under a voluntary layoff program and the rest were laid off.

This year’s layoffs will be operated in April, July and November and employees to be laid off will receive severance of up to EUR14,000 and advised in the process of seeking new employment.

According to company data, about 60% of employees who left the company in 2010 and used its consultancy services have found new jobs.

„Our long-term interest is to have a company that is viable and active on the market. These projects don’t entail just cutting the number of employees. However, many of our projects do entail job cuts because we want to be capable to do more with fewer resources,” Romtelecom general manager Yorgos Ioannidis said in a press release.

He added Romtelecom currently has several thousand product options and seeks to significantly lower their number and reduce operating costs.

„This will obviously entail a lower need for staff to manage these products,” Ioannidis added.

Besides cost reduction efforts, Romtelecom also plans to focus on developing new services and offers, invest in telecom infrastructure and continue its partnership with mobile operator Cosmote Romania. The telecom operator also said broadband internet and TV services remain top priorities in its endeavor to position itself as a provider of entertainment.

„We’re already working on a TV platform to be launched soon and we’ll continue to extend our clients’ online options,” said Ioannidis.

Romtelecom is Romania’s largest hard-line telephony operator, with a turnover of over EUR800 million. The company is owned by Greece’s OTE with 54.01% and Romania’s Communications Ministry with 45.99%.

In turn, OTE is 30% owned by Germany’s Deutsche Telekom, which also ensures its management.