Telecom Italia SpA plans to eliminate 1,700 jobs, representing about 3 percent of its workforce, and is delaying a youth-hiring program as Italy’s biggest phone company seeks to reduce labor costs.
The carrier informed unions of the job reductions at a meeting in Rome on Thursday with officials of the Ministry of Economic Development, it said in a statement. The company employed about 50,000 people at the end of the first quarter, excluding staff of discontinued operations.
Telecom Italia “is willing to further discuss with the trade unions to identify the needed solutions that combine safeguard of employment with efficient and sustainable labor costs,” the Milan-based company said in the statement. The reductions will be in call-center and business-support areas, the company said.
Telecom Italia’s 2015-2017 business plan targets cost savings of about 1 billion euros ($1.1 billion) during the period, with a goal to reduce personnel costs by 100 million euros.
The company led by Chief Executive Officer Marco Patuano also said it’s delaying the recruitment of 4,000 youths until the government adopts measures in its so-called Jobs Act.