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Telecoms reduce staffing levels, defending profitability

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Operators try to defend their profitability in different ways, taking into account a number of current and upcoming investments. One solution is to cut staff. This year, T-Mobile, Orange and Netia decided to take such a step.

Orange will lay off a maximum of 2.1 thousand employees

Orange announced in a stock exchange communiqué that in the years 2020-2021, a maximum of 2.1 thousand people, i.e. approximately 17% of all employees employed in the group, will leave the company under the so-called Voluntary Leave Program,. This decision results from the completed negotiations on the terms of the so-called Social Agreement for the years 2020-2021 with trade unions operating in telecommunication structures.

It was agreed that most people could leave the company next year. The reduction can then be made to approximately 1.25 thousand jobs. However, the Voluntary Leave Program provides for a number of employee compensations, including the possibility of basic salary increases.

Orange has been systematically reducing the number of employees in the company for years. However, the operator still employs the largest number of people in the market, i.e. approximately 12,000.

T-Mobile will reduce its workforce by approximately 7% by the end of Q1 2020.

In the first week of November 2019, T-Mobile Polska published information on its group redundancies. The redundancies are to be completed by the end of the first quarter of next year. In total, almost 300 people will lose their jobs in the company – about 7% of the total number of employees. The reductions will affect the back office (areas of support for the main business) and less profitable shops. Telecom’s layoffs result from the company’s focus on improving profitability and increasing EBITDA.

This year’s staff cutbacks were also carried out by Netia’s management.

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