Telecom reaches redundancy agreement

22 Sep 2008

Telecom Italia has reached an agreement with unions regarding plans to make 5,000 workers redundant by 2010. The company will offer a severance package equal to 90% of an employee’s regular monthly pay, Telecompaper reports. The lay-offs come as the telco seeks to cut costs as it works to reduce its EUR37 billion (USD53.5 billion) debt; the planned redundancies will save around EUR300 million a year Telecom Italia says, though there will be a EUR287 million one-off restructuring charge.

Italy, Telecom Italia (TIM)