Vimpelcom is planning job cuts that could run into the thousands, it emerged this week.
The Russian operator is taking action amidst fierce competition in the market and against the backdrop of a difficult economic climate, Bloomberg reported, citing an interview with a senior executive.
Mikhail Slobodin, head of Russia at the telco, told state-run TV channel Rossiya 24 that the cuts will focus on eliminating exce ssive management layers and will not affect client-facing positions, the newswire said.
The cuts will come in Russia, where the telco employs around 27,000 employees, it added.
Slobodin noted that competition in the Russian mobile market is heating up.
A week ago Tele2 announced that it will launch services in Moscow next month in competition with Vimpelcom and Russia’s other big players MTS and MegaFon.
Vimpelcom and its rivals also have the Russian economy to contend with.
The economy shrank by 4.6% in the second quarter of this year, compared with Q2 2014, following a 2.2% year-on-year decline in the first quarter, Bloomberg said. The decline could continue through next year, it added.
