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Romtelecom fires yet another several hundreds and cuts tariffs for broadband internet

Luni, 28 iunie 2010, 18:33 English | Business

Romtelecom expects several hundreds of employees to voluntarily resign this week, when voluntary dismissal programme concludes, after one month's run, Romtelecom executive manager Yorgos Ioannidis announced. The programme addresses those who have been working for the company for over 10 years. If they accept, they receive a double compensation in comparison with the figures stipulated in their work contract. "Volunteers" could get up to 14,000 Euros after taxes, depending on how many years they worked for the company.  On the other hand, the company announced on June 28 the cut in internet broadband tariffs for residential clients on a national level.

"We expect several hundreds of employees to accept the offer this Wednesday. We're looking to improve our services and to offer better quality with minimum staff. If we look in the past, when we fist began the restructuring plan, the number of staff was reduced from 12,500 in March 2008 to less than 9,000 in the present, while the quality of services increased", Yorgos Ioannidis declared.

The Romtelecom chief added that he could not forecast a number of staff that the company will be still hiring by the end of the year. Before the voluntary redundancy plan started, Romtelecom announced in February that 600 employees were going to be dismissed by May 1, 2010, during an endeavour to make operations more efficient and lower costs.

On the other hand, the telecoms operator announced a cut in broadband tarrifs to begin on a national level for residential clients, ranging from -17% to -29% (before VAT). The prices varied until now, but the operator will introduce unique fees because in some regions the company was losing out.

Lat year, Romtelecom recorded operational losses worth of 15.3 million Euros, dropping 57.7% against the operational loss in 2008, which was 36.2 million Euros. Despite an increase in TV and internet broadband services, Romtelecom's revenues dropped by 7.2%, amounting to 807.7 million Euros. The total number of staff dropped as well, by 3.2%, counting 10,117 staff in 2009.























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