KPN Announces Job Cuts

THE HAGUE, The Netherlands -- KPN intends to restructure its call center activities now that call center company SNT, once spun off by KPN, has returned to the group. From now on, KPN intends to concentrate on call center activities that support the group’s core business. KPN aims to increase efficiency and effectiveness, resulting in lower costs and higher customer satisfaction. Processes will be streamlined, activities merged and capacity utilization improved. SNT’s other call center services and services currently still provided to third parties will be outsourced.

The restructuring operation will reduce the workflow for call center agents during the second half of 2005, leading to a reduction of around 500 positions. The expectation is that this gradual reduction will take place through natural turnover and the phasing out of temporary personnel. The restructuring will also lead to the loss of 130 jobs at the head office. Compulsory redundancies will be avoided wherever possible, but cannot be ruled out entirely. KPN has informed the works council of the plans and requested a formal opinion. An agreement in principle has been reached with the trades unions regarding a new social plan.

Total job losses resulting from this restructuring operation form part of the headcount reduction of 8,000 in the next five years as previously announced by KPN.

KPN Telecom NV