Far EasTone Telecommunications Co (遠傳電信) cut its personnel expenses by 10 percent, a Far EasTone spokesman told the Taipei Times over the weekend.
The spokesman, who declined to be named, denied a local Chinese-language newspaper report Friday that between 600 and 800 employees lost their jobs at Taiwan's third-largest mobile phone operator.
Instead, only about 350 employees were put out of work, mainly low ranking engineers and staff within the company's the customer service unit, the he said. The job cuts will trim personnel costs by roughly NT$300 million, he said.
"The move is aimed to make the company more cost-efficient and more competitive," the spokesman said, citing an instruction set earlier this month by Douglas Hsu (徐旭東), chairman of Far Eastern Group (遠東集團) which owns the telecom company.
Far EasTone had over 2,800 workers at the start of this year before the company froze recruitment and stopped replacing employees. The workforce cut were done through layoffs, early retirement, or relocation of staff, according to the spokesman.
Slowing economic growth and delays in the release of mobile phones and services designed to enable Internet use, videos and music led to the reduction of staff trained to handle the services, a Chinese-language newspaper reported, citing Far EasTone President Joseph O'Konek.
On Oct. 4, Far EasTone slashed its 2001 profit forecast by 13 percent to NT$6.5 billion, blaming slowing economic growth and the high penetration levels of mobile phones in Taiwan.
The company had said earlier that profit in the first three quarters was NT$5 billion, or three-quarters of its lowered target.
There are as many as eight mobile phones for every 10 people in Taiwan, according to statistics provided by the Directorate General of Telecommunications, under the Ministry of Transportation and Communications.
Far EasTone's rivals in Taiwan include Chunghwa Telecom Co (
Last week, the government said it planned to raise at least NT$33.6 billion by giving out five licenses for so-called third-generation mobile phone services through an auction. In May, Far EasTone said it planned to bid for one of the licenses.
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