The shape of the world’s economy has caused several companies to take a rather unique approach to their business. It appears that telecom company, Swisscom is one of those that is using some rather interesting book keeping methods to stay afloat.
The company announced that it will be getting rid of as many as 400 jobs in 2013. The company said that there will also be a restructuring that will allow it to add 300 new jobs in areas of the company that are showing strong growth.
Swisscom, which currently employs more than 16,000 people, released a statement late last week that said the restructuring will incur a onetime cost of $53.7 million in the final quarter of this year.
"Where 10 years ago voice telephony was the single largest source of revenues, its contribution has declined strongly ever since," said Swisscom (News - Alert). "Simultaneously, Swisscom has built numerous new businesses with which the company generates a multibillion revenue stream, thereby nearly compensating for the erosion of the classical telephony business.
The company added that they will be adding the 300 new jobs in growth areas while cutting 100 managerial and 300 lower level jobs that are allowed under a collective labor agreement. During the announcement of the restructuring, the company said that one of the growth areas it will be dedicating more attention to will be a new fiber-to-the-street network. The FTTS network will be tested in a small Swiss community known as Flerden. Residents in this town will connect to the Internet with speeds of up to 50 Mbps this year and those speeds could increase to 100 Mbps in 2013.
Flerden is the first of three communities that Swisscom is planning on testing this new FTTS technology. Charrat and Grandfontaine are the next two communities to get the new tech. Swisscom is looking to eventually plug in as much as $1.8 billion into their next generation network. In 2013, the company hopes to go nationwide.
Edited by Brooke Neuman