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French Government May Step in to Block Telecom Job Cuts
Published on:
The French government is preparing to intervene in the telecoms market to prevent the mobile networks cutting staff numbers following a price war that has hurt the three incumbents.
The junior minister for the digital economy, Fleur Pellerin told the National Assembly that the newly elected government would not accept falling revenues as a justification for job cuts in an industry he said was "inherently insulated from international competition,"
The government will outline its proposals in September.
The three main mobile networks have cut their tariffs in response to the launch of the country's fourth mobile network, Iliad, which launched as a low-cost carrier at the start of this year.
Bouygues Telecom has already announced that it wants to cut 556 jobs as a cost-cutting measure, while SFR says it wants to reduce costs by EUR450 million this year and a further EUR500 million of savings next year.
France Telecom-Orange has not announced any job cuts, which may be due to previous reorganisation efforts, or because it is 27% owned by the government.
Tags: [France]
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