EMCC European Monitoring Centre on Change

Telecom Italia

Company/Organisation:
Telecom Italia

Geographic Location

Country: Italy

Company

Sector: Information / communication
Telecommunications
61 - Telecommunications
Number Employed: 50307

Employment Effects

Announcement Date: 18-01-2018
Planned Job Reductions min: 4500
Planned Job Reductions max: 6500
Type of Restructuring: Internal restructuring
Foreseen End Date: 31-12-2020
Planned Job Creation: 2000
Other Job Reduction Measures: 6500

Additional Information

Telecommunication leader Telecom Italia announced up to 5,500 net job cuts.

As disclosed to unions, the intention behind the job cuts is to bring down costs in the 2018-2010 Industrial Plan that will be presented to shareholders in March. Telecom Italia has already been reducing its staff over the last years (see Telecom ItaliaIT-2016, Telecom ItaliaIT-2015).

The plan entails between 4,000 and  5,000 early retirements and incentives for 2,500 voluntary dismissals, partially off-set by 2,000 hirings.  The latter shall be balanced also by a short-time working scheme, with a generalised reduction of working time by 20 minutes a day.

Unions are available to negotiate, but they consider the measures to be inadequate to safeguard redundant workers. They expect the management to illustrate the business strategy and the sustainability thereof in terms of staff and planned investments.

The association of minority shareholders Asati, set up by Telecom employees, also expressed doubts, noting that the job cuts may engender the loss of valuable competences.

Update 6/03/2018: 

On 6 March 2018, telecommunication company Telecom Italia unveiled its 2018-2020 industrial plan which entails a net headcount reduction of 4,500. This represents the balance between announced redundancies and new hirings. Some 6,500 redundancies will be implemented by means of early retirement (4,000 workers) or incentivised voluntary exits (2,500 workers). At the same time the company announced it will hire 2,000 new workers.

Negotiations between the company and the trade unions on the employment impact of the new industrial plan started on 13 March but no agreement has been reached so far. The company announced that it will act unilaterally in case no agreement is reached within the next few weeks.