Eircom job cuts - Downside of IT revolution

On emerging from examinership in June, Eircom announced a five-year survival plan that envisaged cutting its workforce by 1,000. The company’s share of the fixed-line market and the broadband market has been declining.

During the 12 months to June, its revenue declined by 10% and it has decided to “accelerate a range of cost-saving measures” in order to improve its competitiveness. It has decided to double the numbers being cut from its workforce. Those 2,000 jobs will amount to 35% of the existing workforce.

The company has announced plans to spend €400m to support high-speed internet services as part of a €1.5bn expenditure programme. Communications Minister Pat Rabbitte has welcomed the commitment to invest €1.5bn in the network, but regrets as “inevitable” the further restructuring.

Eircom’s latest announcement came a day after An Post announced it is seeking to cut up to 1,500 fulltime positions by 2016. The loss of such jobs is a frightening aspect of the downside of the technological revolution.