GENEVA: Swisscom, Switzerland’s biggest telecom company, is cutting 700 jobs after announcing on Thursday a 20 percent drop in net profits for 2015 from the previous year.
The company said net income fell to 1.36 billion francs “largely due to non-recurring items”.
Revenue dipped by 0.2 percent to 11.68 billion francs.
But in a letter to shareholders, Swisscom said it was holding its ground despite a more challenging environment.
It noted that it invested 1.8 billion francs last year in improving infrastructure, primarily to expand the ultra-fast broadband network for mobile and fixed-line phones.
The company outlined a plan to cut its annual cost base by 300 million francs a year by 2020, which will involve “headcount reductions”, with 700 employees leaving the company.
Among other measures, Swisscom is reducing the number of its call centres from 14 to eight by the end of this year.
Sites will be closed in Geneva, Zurich, Bern, Basel, Lucerne and Rapperswil (in St. Gallen), with employees to be transferred to remaining call centres in Lausanne, Neuchâtel, Biel, Olten, Sion, St. Gallen, Chur and Bellinzona.
In addition to job cuts, mostly in “supporting units”, the company said it was also planning to create 500 new positions this year in growth areas of Switzerland.
By the end of the year, Swisscom said it expects its workforce of around 21,600 will be “slightly smaller” than in the prior year.
The Syndicom union expressed concern at Swisscom’s announcement both over the jobs cuts and the numerous planned transfers of employees, which its said are often difficult for individuals to deal with.
It called for a generous application of social plans for workers who are impacted.
