Polish telecom Netia to cut almost quarter of workforce

Poland’s No.2 telecoms operator, Netia, wants to cut its workforce by almost a quarter as part of its restructuring scheme aiming at curbing costs by 50 million zlotys ($15 million) next year, it said on Thursday.

The group plans to lay off up to 400 people in the first quarter of 2015. Netia, valued by the market at $594 million, currently has around 1,700 on its payroll, already cut 200 jobs earlier this year.

“The restructuring costs will be included in our 2014 results,” the group’s chief executive Adam Sawicki said, adding that the lay-off charges booked in the fourth quarter will equal around 25 million zlotys.

Netia has built its position through takeovers, but has failed to buck the trend of declining revenue from fixed-line telephone services.

Market sources told Reuters it was now in the running for TK Telekom, the telecoms arm of the Polish state railways.

Earlier this year, Zbigniew Jakubas, the Polish billionaire who is Netia’s largest shareholder, said he wanted Netia to consider a tie-up with fast-growing local mobile rival Play to boost revenue growth.

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