Telecom Italia (TIM) is considering cutting up to 7,000 jobs in Italy via incentivised layoffs and has set aside around EUR 700 million to pay for early retirements and voluntary buyouts, according to unnamed sources cited by Bloomberg. The company has already begun informal discussions with unions to find ways of reducing labour costs while remaining in compliance with Italian law, said the sources, adding that the group wants to reduce its 60,000-strong domestic headcount through about 4,000 early retirements and about 3,000 voluntary buyouts by 2020.
However, the sources said the company also aims to hire some 2,000 young employees, funded by reducing the working hours of about 3,000 other people. At the end of 2015, the group negotiated a number of so-called solidarity contracts with unions, under which employees agreed to work less on condition that nobody would be laid off. TIM is set to meet with unions to discuss the new plans on 18 January and wants to firm up its labour plans by early February, said the report.
