Telecom Italia to cut 5,000 jobs in next two years

Telecom Italia, which is looking to cut around $370 million through an ongoing restructuring, said it will eliminate 5000 jobs by 2010 to help reach its cost-cutting goals. The carrier has been in a recovery mode since late last year, when it gained Spain's Telefonica as a new controlling shareholder. Franco Bernabe, the former Telecom Italia CEO whom Telefonica put back in charge, said (somewhat famously, if we have anything to do with it) earlier this year that company watchers should expect "no miracles, no fireworks" during the restructuring.

The incumbent telco also been under a lot of competitive pressure from the likes of FastWeb and Tiscali, companies whose competitive threat may only increase under foreign ownership with deeper resources--FastWeb is now owned by Swisscom, and Tiscali has been up for sale and could end up in Vodafone's arms. Telecom Italia also has been considered a possible buyer for Tiscali.

For more:
- read this story in the Wall Street Journal