News
Italian telco will reportedly cut 15,000 positions, or close to 30% of its workforce, sources say.
Telecom Italia could be planning to cut as many as 15,000 jobs following utility company Enel’s announcement last month that it will roll out a widespread fibre-to-the-home (FTTH) network in Italy alongside its electricity infrastructure.
The news came from Bloomberg, which cited people familiar with the matter. As yet, there has been no official comment from Telecom Italia.
However, we understand that Enel is due to make further announcements on its fibre scheme later on Tuesday, after which Telecom Italia will assess its options.
It is clear that shedding jobs is a highly likely option.
The Italian incumbent will slash the positions, amounting to almost 30% of its workforce if Bloomberg’s information is correct, due to the competition from Enel, which will open up its new infrastructure to retail operators, making it easier for Telecom Italia’s rivals to provide high-speed Internet services.
Enel a fortnight ago said it will spend €2.5 billion on the network, which will cover 7.5 million homes in the first few years of the rollout.
The newswire quoted Michele Azzola, who serves as national secretary of the SLC-Cgil telecommunications workers union, as saying that if the job cuts report proves to be true, much of the blame will fall on Italian prime minister Matteo Renzi, since the state is Enel’s biggest stakeholder, with around 24%.
The PM has "lost any interest" in Telecom Italia over the past year, Azzola claimed. He suggested that the government could have avoided the situation by ploughing money into Telecom Italia instead of favouring a state-backed entity from outside the telecoms sector.
