France Telecom said on Monday it will cut about 14,500 positions through early retirement or reassignment to other public companies this year as the former monopoly pushes ahead with its massive restructuring.
A France Telecom spokesman said the cuts were in line with forecasts made in late 2002, when the company announced a restructuring plan to repair its balance sheet after a rapid expansion spree nearly crushed it with debt.
At the time it said it would cut about 20,000 positions in France through early retirement and reassignment over the next three years.
The cutbacks come as the company is in the throes of its restructuring and making a change to its legal status that should pave the way for further privatization. The government late last month passed a law that will allow France Telecom's civil servants to retain their status -- they can't be fired -- even when the company is no longer majority owned by the state.
This year the company will cut 8,800 net jobs in France, including 8,000 early retirements, 2,200 reassignments and 1,400 new hires, the spokesman said.
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