KPN EnterCom Solutions announces 750 layoffs -- 140 this year and the rest in 2005

October 8, 2004

1 Min Read

THE HAGUE, The Netherlands -- KPN EnterCom Solutions BV, part of the Fixed division of KPN, has announced its intention to cut its workforce by 750 jobs. With a slow economy, price erosion and growing competition slowing down revenues at KPN EnterCom, KPN considers improvement of efficiency and greater commercial clout essential. This particular reduction is not related to the personnel cutback at the Fixed Division by 800 jobs that was announced in January.

Some 140 jobs will be eliminated immediately. The other jobs will disappear during the course of 2005. Forced redundancy will be avoided wherever possible but cannot be ruled out.

The labor unions and works councils have been informed about the intended measures and been asked for advice. Employees who lose their job will fall under the social plan that was agreed with the labor unions in connection with the collective labor agreement that runs to the end of 2005.

A provision of about € 25 million will be charged against the result in connection with this cutback.

KPN Telecom NV

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