Telekom Austria to cut 1,200 jobs

Telekom Austria plans reduce its workforce by 1,250 employees over the next year and will make a €630m provision for the measure in the fourth quarter.

While the charge will affect on this year's results and lead to a small net loss, the Financial Times reports that the company reiterated its operating targets - before the restructuring charge - of a 12 per cent decline in net profit this year.

The group also announced preliminary third quarter results in its statement, saying it had core earnings of €540 million in the three months to September, slightly ahead of a Reuters poll of analysts that averaged €525 million.

Telekom Austria, in which the Austrian government owns a 27.4 per cent stake, employs around 9,500 in its domestic fixed-line unit. Around 70 per cent of them still enjoy civil servant status, making it almost impossible to sack them, according to the FT.