PARIS, Dec 30 (AFP) - The Polish telecommunications operator TPSA, in which France Telecom has a 47.5 percent stake, is to cut 3,500 jobs from its 30,000-strong workforce in Poland next year, France Telecom said here Thursday.
A France Telecom official told AFP that in addition to the 3,500 job cuts there would likely be an estimated 500 voluntary departures, mostly for retirement.
Between 2000, when France Telecom acquired TPSA, and the end of 2003 the Polish group reduced its workforce from 70,000 to 35,000. This year 6,000 jobs were eliminated.
France Telecom said it had been surprised by a decision by Polish regulatory authorites in November to allow competitors with weak investment levels to enter the local telecommunications market.
"The result was the outbreak of a price war that surpassed our expectations and which has made it necessary for us to reduce our external charges and our personnel costs," France Telecom said.
But for the CGT-PTT, the France Telecom's leading union, the job cuts are unjustified, "particularly as the Polish operator in the last few years had already eliminated more than a third of its jobs."
"Nothing justifies these deep cuts, unless they are aimed once again to increase profits and satisfy the appetite of big shareholders."
12/30/2004 18:45 GMT - AFP