The other shoe dropped in Telecom Italia's attempt at financial recovery, as the company announced 4,000 more job cuts on top of about 5,000 announced last summer. The cuts will take the telco's total payroll down to 55,000 employees. Telecom Italia CEO Franco Bernabè also indicated the company will pursue asset sales that may bring it as much as $3.8 billion. He said the telco will attempt to focus on its core Italian market and operations in the burgeoning market of Brazil, which suggests properties such as Germany-based Hansenet are on the block.
Telecom Italia has been a busy company the last few years, expanding into new markets and engaging in acquisitions. It's name still comes up in the rumor mill connected with potential deals, though Bernabe has been talking up cost-cutting for much of this year. It was also reported earlier this year that the telco's largest shareholder, Spain's Telefonica, was urged by another investor to acquire Telecom Italia, though no such deal appears imminent.
- The Wall Street Journal has this report
Telecom Italia announced an initial round of job cuts last June
Telefonica reportedly was urged to buy Telecom Italia