SFR and Bouygues looking to cut costs as competition hits

4 Jul 2012

More details have emerged of the cost-cutting measures to be introduced by the French mobile operators SFR and Bouygues Telecom as they work to trim back their operations following the launch of low-cost rival operator Free Mobile in January. Bouygues Telecom has revealed that 556 of its 10,000 employees will be made redundant as part of a previously announced EUR300 million (USD378 million) cost-cutting plan. SFR, meanwhile, is thought to be looking at reducing outgoings by EUR500 million in 2013, on top of the EUR450 million cuts already planned for this year. A Reuters report, which cites a union source within SFR, says that the cellco will present its full financial plan in November. Bouygues Telecom lost 379,000 mobile customers and SFR saw 620,000 subscribers jump ship in the first quarter of this year as Free Mobile made a dramatic entry into the French mobile market. The new operator picked up 2.61 million customers between its launch on 10 January and the end of March.

France, Bouygues Telecom, SFR