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TPSA Plans More Jobs Cuts Through 2016 as Sales Decline

Telekomunikacja Polska SA (TPS), Poland’s largest phone company and a unit of France Telecom SA (FTE), will continue to cut jobs through 2016 to help offset falling sales.

The Warsaw-based company, which earlier announced plans to cut 1,700 jobs in 2013, started talks with unions on further reductions in the next three years, its spokesman Wojciech Jabczynski said by e-mail today. Jabczynski declined to comment on the Puls Biznesu report today that TPSA, as the company is known, will cut a further 5,000 jobs in 2014-2016.

TPSA sales have shrunk since 2007 as competition increased and the country’s phone regulator forced operators to cut prices. The watchdog is lowering the rates that mobile phone operators charge each other for calls to their networks, while competition from wireless providers is eroding fixed-line revenue.

TPSA shares rose 1.5 percent to 6.9 zloty at 9:42 a.m. in Warsaw, heading for the highest close in more than a week.

To contact the reporter on this story: Marta Waldoch in Warsaw at mwaldoch@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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