Swisscom Systems, the communications infrastructure provider (PBX Services), posted considerable losses in revenue in the first half of 2001 and faces further difficulties in the future. Despite successful measures to improve products and processes the situation has failed to improve fast enough. Sales of communications systems are heavily dependant on the levels of investment in the market which are currently low as investors wait for new technologies to be rolled out. Changes in technology also lead to greater competition.
To boost orders Swisscom Systems launched an extensive sales drive. However, systematic cost-reduction measures are now also necessary. Hence, in addition to substantial optimisation of the infrastructure, 131 of 1765 full-time jobs are to be cut by the end of 2001. The employees concerned will be covered by the provisions of Swisscom´s comprehensive social plan. The trade unions and staff associations will also be involved.
The job losses are part of the market-related cuts announced by Swisscom in March last year which will see the headcount reduced by 3000 by 2003. A significant number of these cuts will come from natural wastage.