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KPN to shed 4,800 jobs
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October 25, 2001: 3:14 a.m. ET
Debt-crippled Dutch telecom company in talks with unions to cut jobs
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LONDON (CNN) - Debt-crippled KPN Telecom said on Thursday it was planning to eliminate about 4,800 jobs in an effort to reduce costs.
KPN ousted Chief Executive Paul Smits in September after the Dutch company failed in two attempts to find a merger partner and reduce its debt of about  23.2 billion ($21.5 billion). The company's stock, which has lost more than three-quarters of its value, soared 8 percent to 4.72 in early Amsterdam trading.
The Dutch company spent billions on buying third-generation, or high-speed, mobile phone permits, that give it the right to offer wireless Internet and video services. KPN, the Netherlands biggest phone company, also paid 9.1 billion for E-Plus Mobilfunk, Germany's third-biggest mobile phone operator.
"The management board of KPN... is going to hold talks with the trades unions on the preparation of a social plan for the involuntary redundancy of about 4,800 employees," said the company. The company currently employs 45,000 people.
KPN said the cuts, together with reductions in external personnel, natural wastage and improved efficiency, would save the company 700 million from 2003. Last year, the company announced a reorganisation programme to cut 2,000 external contract jobs and 6,000 staff jobs. The external personnel target was hit in June 2001, said the company.
"The management board considers early completion of the workforce reduction to be absolutely essential in order to continue reducing KPN's debt burden and to make the company healthy," said KPN. 
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