This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-13155390
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| KPN telecoms firm announces profit warning and job cuts | KPN telecoms firm announces profit warning and job cuts |
| (about 6 hours later) | |
| Dutch telecoms group KPN is to cut its workforce by up to 25% - about 5,000 people - as it struggles with fierce competition and falling demand. | Dutch telecoms group KPN is to cut its workforce by up to 25% - about 5,000 people - as it struggles with fierce competition and falling demand. |
| KPN issued a profits warning on Thursday, sending its share price tumbling 7.7% and forcing a brief suspension in trading. | |
| The company cited continuing problems at its mobile and fixed-line divisions. | The company cited continuing problems at its mobile and fixed-line divisions. |
| The news marks Eelco Blok's first steps to stamp his authority on KPN since becoming chief executive this month. | The news marks Eelco Blok's first steps to stamp his authority on KPN since becoming chief executive this month. |
| Last week, Telefonica said it may shed 20% of its staff - about 6,000 people - at its underperforming Spanish unit by 2013. | Last week, Telefonica said it may shed 20% of its staff - about 6,000 people - at its underperforming Spanish unit by 2013. |
| KPN's announcement hit the share prices of other telecoms companies, with Vodafone down 4.6%, the biggest faller on the FTSE 100 in afternoon trading. | |
| Analyst Peter Jurgens, from Keijser Capital, said: "There is tough competition from many directions. In the past there only was direct competition from phone companies but now you have all these cable companies." | Analyst Peter Jurgens, from Keijser Capital, said: "There is tough competition from many directions. In the past there only was direct competition from phone companies but now you have all these cable companies." |
| KPN said it was cutting its profit forecast for 2011 to 5.3bn euros ($7.8bn; £4.7bn), down from more than 5.5bn euros stated earlier this year. | KPN said it was cutting its profit forecast for 2011 to 5.3bn euros ($7.8bn; £4.7bn), down from more than 5.5bn euros stated earlier this year. |
| The firm surprised the market with the profit warning and by announcing its first-quarter results a week ahead of schedule. KPN said first-quarter profits fell 4.1% to 1.27bn euros compared with a year ago. | The firm surprised the market with the profit warning and by announcing its first-quarter results a week ahead of schedule. KPN said first-quarter profits fell 4.1% to 1.27bn euros compared with a year ago. |
| KPN competes in its home market with Vodafone and Deutsche Telekom, and also operates in Germany, France, Belgium and Spain. | KPN competes in its home market with Vodafone and Deutsche Telekom, and also operates in Germany, France, Belgium and Spain. |