Telecom Italia Cutting Costs, 13,000 Jobs
ROME, Sept. 6 -- Telecom Italia SpA plans to eliminate 13,000 jobs and reduce overall costs by $2.5 billion. According to Roberto Colaninno, Telecom Italia's chairman and CEO since the company's hostile takeover by Olivetti SpA, the cuts are part of long-term restructuring plans. Colaninno also heads Olivetti, which controls 52.1 percent of Telecom Italia. He reported that most of the cuts are to come in Telecom Italia's fixed-line operations.
The company announced that it does plan to hire workers for its thriving cellular phone business, Telecom Italia Mobile SpA (TIM), Italy's largest mobile phone operator. Telecom Italia holds a 60 percent stake in TIM. The company's goals include restructuring its fixed-line business, seeking pan-European alliances for its mobile phone operations, and developing its Internet and data operations, said Colaninno. In addition, Telecom Italia plans to sell its non-core assets and reduce its debt.
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