KPN is until 2015 going to scrap 4000 to 5000 jobs, due to unexpected headwinds on the main Dutch telecom markets. These numbers are about 20% to 25% of total personnel in The
. The stock is currently moving 7.5% lower. The company announced that this morning in a press release. The company also submitted a profit warning: did the company forecast last month that profit for 2011 would amount at least €5.5 bln, now this number is reduced to €5.3 bln. Directly after opening of the AEX ( Netherlands Exchange) the equity dropped 7.5%. Amsterdam
The lowered profit has also to do with necessary new investments of €2 bln, according to KPN. KPN speaks in the press release of ‘accelerated change’ of consumber behavior and of increasing price pressure in the very important business-to- business market.
The growth of communication via social networks, like Facebook and mobile apps, led to a considerable drop of the traditional phone and SMS traffic, according to KPN. The company will compensate this trend by changing their portfolio of subscriptions and by focussing on mobile data traffic.
“We see negative trends in The
”, according to CEO Eelco Blok, who took office recently after long-term CEO Ad Scheepbouwer stepped down. But he added that German pricefighter E-Plus, a subsidiary of KPN, is doing fine on the German market. Last month when the devolution took place, Blok stated that he would not make a U-turn with the company, but now he is clearly retracting from this statement. Netherlands
The loss of jobs needs to be compensated by large-scale outsourcing and offshoring of support services.
The ebitda dropped in Q1 with 4.1%, compared to Q1 last year, to a level of €1.269 bln. The turnover dropped with 1.3% to €3.24 bln.…