Wednesday, 21 April 2021

TIM lining up 1,300 job cuts this year

by Harry Baldock, Total Telecom
Tuesday 09 March 21

Reports suggest that the operator and workers’ unions agreed on Monday to 1,300 voluntary redundancies in Italy

The coronavirus pandemic has taken a hefty toll on the telecoms industry all around the world, the true ramifications of which will not become fully apparent for a number of years.  For TIM, the financial impact is already beginning to show…

The coronavirus pandemic has taken a hefty toll on the telecoms industry all around the world, the true ramifications of which will not become fully apparent for a number of years. 

For TIM, the financial impact is already beginning to show, with revenues dropping by 7.7% last year. Partly in response to the crisis, TIM began slimlining its Italian workforce, with around 2,500 people leaving the group in 2020 via voluntary redundancy schemes.

Now, reports suggest that this slimlining is set to continue, with a further 1,300 jobs set to be cut via an early retirement scheme. According to sources speaking to Reuters, this move has been agreed by TIM and unions, with an additional 178 jobs potentially to follow by the end of 2023 via a different voluntary scheme.

TIM currently employs around 42,600 employees in Italy itself, meaning the cuts represent a total reduction in their Italian workforce of around 3%.

The company announced a new three-year plan last month, with an increased focus on new, digital revenue streams. This includes developing a new cloud unit and enhancing its cybersecurity, IoT, and streaming segments, which TIM hopes will more than double their revenues in these new markets.

According to sources, the success and growth of these new digital units could result in the company hiring new staff for these departments.

In related news, it was last week announced that TIM’s head of wholesale markets, Carlo Filangieri, has been announced as CEO of the new last-mile fibre business, FiberCop. The new company aims to help achieve fibre coverage of black and grey spots around the country and will potentially be merged with Open Fiber to create a nationwide fibre monolith.

 

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