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News : Swisscom to Close Call Centres, Cut Jobs
Bern, Switzerland, Feb 5, 2016 -- Swisscom aims to cut costs over the next five years and is undertaking a number of measures to enable it to do so, including a reduction in staff and the closure of six call centres.
The Swiss telco made the announcement as it presented its financial results for full-year 2015, which showed virtually flat revenues, small growth in adjusted EBITDA, and a decline in net profit.
The move comes "as a result of strong competition and price pressure," said CEO Urs Schaeppi.
The cost-saving plan will include a headcount reduction. Swisscom said it expects around 700 employees will be affected by redundancies, as "some posts in traditional business areas are being lost and are replaced by jobs in new, innovative areas."
The telco said it will create up to 500 jobs this year in growth areas in its home market, but it expects to end 2016 with a slightly lower headcount than it had at end-2015.
Swisscom will also reduce its number of customer-facing call centres to eight from 14 by the end of the year.
Its sites in Zurich, Berne, Basel, Geneva, Lucerne and Rapperswil will close, with staff relocating to other sites. However, the telco did not say whether it will retain all call centre employees.
"Currency effects and more intense competition with stronger price dynamic characterised our business in the last year," said Schaeppi.
"In view of the challenging environment in the ICT market, I am satisfied with our operating business. On a like-for-like basis, we achieved a slight increase in revenue as well as operating income (EBITDA)," he said.
Posted by Veronica Silva Cusi, news correspondent
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With revenue of CHF 4.8 billion for the first half of 2006 and a workforce of 16,739 full-time employees, the Swisscom Group is one of Switzerland’s telecoms company. Swisscom is present nationwide, delivering all services and products for mobile, fixed and IP-based voice and data communications.
Published: Monday, February 8, 2016