Feeds

France Telecom to axe 22,000 jobs

C'est la vie

Eight steps to building an HP BladeSystem

France Telecom is axing 22,000 jobs - between eight and ten per cent of its workforce - in a bid to cut costs as it is hit by a decline in traditional telephone services.

Most of the job cuts are to be made in France, although around 1,000 look set for the chop outside the telco's home territory. Whether that includes the UK, where Orange and Wanadoo operate, has yet to be disclosed.

No one from France Telecom was available for comment at the time of writing although some press reports have suggested that the UK could be spared.

Although 22,000 jobs are to be lost, the firm also intends to hire some more workers between now and 2008, taking the net reduction in headcount down to 17,000.

The giant telco blamed a decline in revenues on home soil - due in part to lower cost of phone calls and lower call volumes - for the cull. This decline "intensified" over the last three months of 2005 as France Telecom came under increasing pressure from a growth in VoIP services, it said today.

Publishing its results, France Telecom reported that revenues grew by 2.5 per cent year-on-year to €49bn and that EBITDA (earnings before interest etc) was up a smidgen at €18.4bn from €17.9bn. Snag is, the telco is lumbered with a whopping net debt mountain of €47.8bn.

Analysts at Ovum say it is becoming "increasingly difficult for the group to generate revenue growth, and profitability is suffering as a result of increased expenditure in a highly-competitive environment".

"It is in this context that the announcement to cut a further 8 to 10 per cent of its workforce by 2008 needs to be seen," Ovum said. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.