Eircom to axe 1,200 posts in cost-cutting deal

As many 1,200 workers are to lose their jobs at Eircom in a cost-cutting deal agreed by bosses and union leaders, it was announced tonight.

The telecoms company will also enforce a two-year pay-freeze across the entire group until 2011 while allowances are to be slashed by as much as a quarter.

In the so-called restructuring programme, performance-related annual bonus payments are being cancelled over the next two years.

Cathal Magee, Eircom’s acting group chief executive officer, said the cutbacks were necessary to safeguard the future of the troubled company.

“The company and the union representatives have demonstrated the willingness to make difficult but necessary decisions to ensure the long term competitiveness of Eircom,” he said.

“This announcement is an important first step.

“Management recognises the very significant impact of the current economic environment and is committed to securing far-reaching cost reductions, and an overall vision and strategy framework for the business.”

The job losses, which will happen over the next two years, will target permanent employees as well as contract staff.

Talks are continuing at the former State-owned telecoms firm about more costs saving measures.

Bosses want to make yearly savings of 130 million euro by 2011.