Dutch cellco to swing the axe after 20% fall in Q1 profit

24 May 2011

T-Mobile Netherlands, the Dutch mobile arm of German powerhouse Deutsche Telekom (DT), is looking to lay off 25% of its 1,900-strong workforce in the country, local daily Het Financieele Dagblad reports, without citing sources. The paper claims the decision is being taken in the wake of the cellco reporting a 20% fall in net profits in the first quarter of this year, on the back of a 5% dip in revenue. If confirmed, it would make T-Mobile the second major Dutch telecom services provider to embark upon a restructuring exercise. Dutch incumbent KPN (or Royal KPN) is also starting a restructuring, and other providers are feeling the pinch due to increasing competition, partly from ‘free’ chat services being offered by social networking sites.

Netherlands, T-Mobile Netherlands