EMCC European Monitoring Centre on Change

KPN

Company/Organisation:
KPN

Geographic Location

Country: Netherlands

Company

Sector: Information / communication
Telecommunications
61 - Telecommunications
Number Employed: 20000

Employment Effects

Announcement Date: 21-04-2011
Planned Job Reductions min: 4000
Planned Job Reductions max: 5000
Type of Restructuring: Outsourcing
Employment Effect Start: 01-06-2011
Foreseen End Date: 01-06-2015

Additional Information

Telecom company KPN has announced it will cut between 4,000 and 5,000 jobs in the Netherlands in the coming four years. A large proportion of these jobs will be outsourced to India. The job cuts are attributed to the loss of turnover in the traditional telecom activities, due to the increasing use of social media and various software like ping and voip. Unions and the central Works Council reacted opposed the decision.

UPDATE: On 23 April 2012 KPN announed it will increase the speed of the restructuring with two years, finalizing the process already in 2013. Background is the increasing loss of turnover in its mobile phone netwerk, due to freely available services like Skype and Facebook.