UP TO 2,000 jobs are set to go at Eircom under a cost saving plan being drawn up by the company’s board of directors, TheJournal.ie understands.
According to an internal email, 30 per cent of the company’s workforce will lose their jobs between now and June 2014.
No compulsory job cuts are being sought as of yet, however those who have passed the age of 60 will be asked to retire.
In a statement, Eircom said it informed staff today that it was reducing the current workforce from 5,700 in order to accelerate a range of cost saving measures.
“It is envisaged that the existing workforce will reduce by 2,000 employees from our current level of 5,700 as part of the cost saving programme. Other changes include further modernisation of our work practices and consolidation of under-utilised office locations across the country.
Union representatives have been informed of the announcement and it is the company’s intention that detailed discussions on the programme will commence shortly.
Commenting on the announcement, Herb Hribar, eircom Group CEO said, “The challenges facing Eircom are significant. They require a fundamental transformation in the way we are organised, the business activities we prioritise and the work practices we have adopted in order to substantially reduce our costs and become more efficient.
The programme is ambitious but the challenges are not insurmountable. The business strategy remains sound and our strategic investment continues. Achieving these cost reductions is vital to providing the organisation with greater flexibility. It will enable eircom to deliver greater value, exciting new products such as fibre broadband and improved service to its customers across Ireland.
The Communications Workers Union said it understood that the management team at Eircom was undertaking a review of its operations including current staffing levels.According to Steve Fitpatrick, CWU Secretary General, any reductions in job numbers were a matter for discussion and negotiation between the Company and its workers.
“We welcome the managements’ commitment to engaging with the Eircom workforce and their Union representatives and we wish to stress that any further reductions in job numbers must follow established protocol and be on a voluntary basis only.”