KPN will remove 580 jobs in the business branch. The job cuts are necessary according to the company to restructure the section Business Market to achieve a even stronger customer focus and standardization of services and processes. ”
KPN is taking a provision of € 50 million in the first half of 2015. The job cuts will be finalized in 2015. The company expects annual savings of approximately € 45 million in 2016.
At the same time, KPN is within the component Consumer Market 200 technicians to take connect new customers and existing customers even better service, as the company said Wednesday in a press release.
KPN is active in the Netherlands with 14,329 FTE (full time equivalent). The business division currently has just under 7,000 jobs. It announced job losses come on top of an earlier this year announced reorganization, which costs at 2016 fifteen hundred to two thousand jobs.
KPN will take part in the Consumer Market 200 technicians to connect new customers and existing customers to provide better service.
accept Dutch Height
Shrink
The business customers of KPN steps according to KPN increasingly switching from traditional services to less labor-intensive IP technology. Instead of separate purchase of fixed and mobile telephony businesses take off than a combined package that runs over the Internet Protocol. “At the same time shrink and many Dutch companies are deferred investments in IT,” said KPN.
These developments have led to shrinkage of the business market as a whole, so the turnover in the part of KPN Business Market under pressure . Revenues from new businesses such as cloud services and security is still insufficient to compensate.
CEO Eelco Blok wants to go to an organization “that can better respond to the recent developments in the business market.” “Of course it is a difficult decision to reduce the number of jobs, but it is necessary to strengthen our position in the business market,” said Block in a press release
Consumententak
In consumententak It sees the positive effects of earlier measures reflected in the results. The number of consumer customers grows according to the company back and customer satisfaction figures are in their own words well above the market average. KPN therefore will assume within the consumententak 200 technicians to meet the rising demand.
Employees KPN today informed about the proposed plans. KPN today tabled the request for advice to the Works and KPN is in talks with the works council and the trade unions on the proposed measures.
Mustard after meals
In a reaction union official says Hans de Jong of the Union that the reorganization “as an afterthought seems to come.” According to him, the company’s technological and social developments can see it coming. “We continue to have the impression that KPN always behind the times encounter and react too late to market developments and therefore it is always forced to have to cut costs.”
The union leader calls KPN to come up with a long term vision for 2020. This should lead to more peace among employees and confidence in the plans of the company. The shareholders should insist on here, says De Jong.
Share nearly 1% lower
The operation in the corporate division does not come as a complete surprise. At the presentation of the latest quarterly figures was already alluded to this. Also had the unions already expressed their fear of job losses. At the fair, the KPN share fell after one hour trading by 0.65% to € 2.56.
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