Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
OTE, Greece’s biggest telecommunications group, offers early retirement to 1000 staff employees all over Greece.
According to media sources, Hellenic Telecommunications Organization (OTE) announced via internal memo, on Wednesday, September 12th, 2012, its plans to cut costs by offering early retirement or new roles to a fifth of its local landline workforce - about 2,000 staff. Voluntary retirement will be offered to about 1,000 staff due to retire by 2015.
UPDATE 1.11.2012: OTE, Greece’s biggest telecommunications group, offers early retirement to 1800 employees all over Greece. OTE proposed similar, but smaller-scale voluntary retirement schemes every year for the past seven years
Following an official announcement on September 2012 Hellenic Telecommunications Organization (OTE) announced on November 1st a programme regarding the voluntary exit of 1,800 employees who are approaching retirement age. The firm added that the key terms and conditions of the scheme will be communicated to employees within the next days.
The company raised its primary target of a voluntary exit plan for 1,000 employees, due to its registered decline in revenues and profits in the first nine months of the year. The cost of implementation of the scheme will depend on the number of employees who opt-in, but according to calculations it will add up to 100million euro and it will be fully incurred by the company.
UPDATE 7.1.2013: According to OTE's official statement a total of 1,516 of its employees accepted its voluntary redundancy proposal, which aims at reducing staff numbers significantly, saving the company around EUR80 million per annum, while it will also boost its competitiveness and allow it to proceed with its modernization program.
OTE is a former state monopoly, and now 40-percent owned and managed by German group Deutsche Telekom. They first announced their intention to offer an early retirement plan in March, but they had to wait for the government to change the tax treatment of such schemes before it could go ahead.
It has already sold assets in Serbia and plans to do the same with its Bulgarian unit Globul to cut debt. The company has to repay 899 million euro of bank loans by February, followed by 1.2 billion of bonds in August. OTE operates in four countries in southeast Europe but most of its income comes from its home market.
Eurofound (2012), Hellenic Telecommunications Organization, Internal restructuring in Greece, factsheet number 74293, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/74293.