October 31, 2012 / 7:50 PM / 5 years ago

Swisscom flags 50 mln Sfr charge Q4 for 100 job cuts in 2013

ZURICH, Oct 31 (Reuters) - Swisscom will charge 50 million Swiss francs against its fourth-quarter earnings in connection with 100 job cuts next year, the telecommunications firm said on Wednesday.

The Bern-based company said it will cut 400 jobs, but many of those cuts will be offset by 300 new jobs in growth areas. The net cuts of 100 jobs represent 0.6 percent of Swisscom’s overall 16,415 workforce at end of third quarter.

“The share of telephone services within our company has continually declined, though much of the reduction has been compensated with newer activities,” Swisscom said in a statement issued in response to a report in Swiss newspaper Handelszeitung that the company would cut 1,500 jobs.

Swisscom’s growth areas include Italian unit Fastweb, where the company in September earmarked 400 million euros ($518.32 million) for upgrades to its Italian fibre optic network.

One month earlier, Swisscom lowered its full-year sales target due to the Swiss franc against the euro, but said it would keep its dividend unchanged at 22 Swiss francs ($23.63) per share if other financial targets were met.

Swisscom now expects full-year sales of 11.3 billion francs, but kept other financial guidance unchanged, including a forecast of earnings before interest, tax, depreciation and amortisation (EBITDA) of 4.4 billion francs and stable Fastweb revenue of 1.6 billion euros excluding its low-margin hubbing business.

Swisscom reports the third quarter on Nov 8. ($1 = 0.7717 euros) ($1 = 0.9312 Swiss francs) (Reporting By Katharina Bart; editing by Gunna Dickson)

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