MILAN (Reuters) – Telecom Italia is nearing an agreement with national trade unions to cut 2,200 jobs through an early retirement scheme as part of a wider cost-cutting plan to 2024, two sources familiar with the matter said on Thursday.
The reduction plan would come on top of a previous agreement, sealed in June, entailing 1,200 jobs cuts by November. As of March 31, TIM employed about 42,500 workers in Italy.
Under pressure for years from aggressive price competition on its home turf, CEO Pietro Labriola is looking to revamp TIM’s business through a break-up of its operations while seeking about 1 billion euros in savings between now and 2024.
TIM executives and union representatives were meeting on Thursday to discuss a wider agreement to reduce staff costs, the sources said, declining to be named as discussions were not public and deliberations were ongoing.
Under the proposal under discussion, about 2,200-2,300 workers could leave the company between September and February 2024, the sources said.
Under the scheme, TIM would hire as many as 550 workers over the period, while most of TIM’s domestic workforce would be affected by a reduction in working hours, comprised between 10% and 25%, the sources added.
TIM declined to comment.
In common with other incumbent telecom operators in Europe, debt-laden Telecom Italia is saddled with high staff costs.
Moody’s investors service calculates they accounted for around 27% of total 2021 operating spending, or 19% of revenue.
(Reporting by Elvira Pollina; Editing by Keith Weir)