Eircom still cutting jobs and costs
Published 16/06/2010 | 05:00
EIRCOM is still cutting jobs and costs as the recession and increased competition from mobile phone operators encourages customers to cancel their landline subscriptions, chief executive Paul Donovan said yesterday.
"We do not see any sign of economic recovery," Mr Donovan said a few weeks before the former state monopoly is due to finish its financial year. "We are continuing to focus on reductions to transform our customer base," he added.
Eircom will have cut 1,200 employees by September but will have to slash more jobs in future, the chief executive conceded at a press briefing to announce the introduction of high-speed broadband to parts of Sandyford in Dublin and suburban Wexford by the spring of next year. Investors were effectively betting that Eircom could be forced to engage in what is known as pre-pack administration -- where bondholders, owed €3bn, take a massive loss on their investments.
Eircom said the trial in Sandyford and Wexford was to assess consumers' appetite for super-fast internet connections which allow people to watch large amounts of video or shift huge amounts of information.