Eir is looking to cut nearly a fifth of its workforce as part of a major restructuring applicable to almost all of its 3,000-plus employees.
Just days ago, Eir confirmed the completion of the takeover deal by the consortium led by French telecoms investor and operator NJJ Telecom Europe, owned by Xavier Niel. Now, the former State telecom company has announced plans for a significant restructuring of its workforce.
Eir is seeking to cut 750 staff as part of a voluntary redundancy programme that will be open to most of its 3,220 employees.
This follows on from another voluntary redundancy scheme announced by Eir last year that resulted in 270 employees taking the company up on the offer.
Anyone wishing to avail of the offer now has 30 days to consider, although some employees will not be eligible, particularly those involved in Eir’s commitment to roll out broadband to 300,000 premises as per its agreement with the Irish Government.
In an official statement, the company said the job cuts are part of “an effort to deliver costs savings and create a leaner, more agile organisation. In parallel, the company plans to simplify its products and business processes.”
It also emphasised: “Today’s (12 April) announcement does not in any way impact on the company’s ability to deliver on its recent contractual commitments in respect of our commercial rural roll-out of fibre to the home (FTTH) to 300,000 homes and businesses.”
Eir confirmed that eligible staff have – or will shortly receive – notification of the offer on the table, and emphasised that the process is entirely voluntary.
New board of directors
The cost-cutting measures have been underway for some time, it added, and it had become apparent that further cost-saving measures were necessary.
On 9 April, a new board of directors was announced, with Carolan Lennon as CEO, and it will be working with a new senior management team.
At the time, Lennon said: “I am looking forward to managing Eir into the next phase of its development. I will work with a new senior management team, all of whom have been appointed from within Eir and who have substantial industry knowledge and market experience.”
The new board of directors is composed of: David McRedmond (chair), Paddy Browne, Rose Hynes, former CEO Richard Moat, Pádraig Ó Ríordáin, Fiona Tierney, Michael Golan, Olivier Rosenfeld and Niel.
NJJ now owns 32.9pc of Eir, while Iliad owns 31.6pc and Niel himself has a 52pc stake in Iliad.